Textile manufacturer Unitika Ltd on Monday warned it expects to swing to a loss for the fiscal year to March 31.

The company, which last month unveiled a huge cost-cutting programme resulting in around 1,000 jobs losses, said it now sees a group net loss of 7.8 billion yen compared to its original outlook of a net profit of three billion yen.

Unitika cited an extraordinary loss of 12.9 billion yen from the liquidation of its corporate pension fund and also cut its group sales outlook to 230 billion yen from 236 billion yen, although its pre-tax profit outlook of four billion yen is unchanged.

The firm recently announced plans to consolidate facilities for its textile division which have been hit by a softening in prices as it looks to focus on its various non-textile operations such as plastic film.