Apparel fabric manufacturer Delta Woodside Industries Inc reported net sales of $37.0m for the quarter ended September 29, 2001 compared to net sales of $63.2m for the quarter ended September 30, 2000.

Including impairment and restructuring charges of $8.7m associated with the closure of its Furman Plant in August, the company reported an operating loss of $10.2m and a net loss of $8.2m or $0.35 per common share. This compares to $6.3m operating profit and net income of $2.9m or $.12 per common share for the quarter ended September 30, 2000.

The Company stated that this quarter's results showed a significant improvement over the $5.9m operating loss reported in the previous quarter.

WF Garrett, president and CEO, commented: "Although we have a long way to go in order to get our business in a healthy position, we have seen significant improvement over our fourth quarter results.

"Even though our new product development effort is in its early stages, I feel very positive about our progress in this area. Also, I am extremely encouraged by the results of our cost reduction programme which exceeded our plan for the first quarter. We believe these cost reductions and new products should make a significant impact in returning the company to profitability."

Delta Woodside employs about 1,900 people and operates six plants located in North and South Carolina.