Yarn maker Unifi Inc has reported an increased net loss for the fourth quarter of 2005, but said that it narrowed its loss for the 2005 financial year.

The company reported a quarterly loss of USD9.0 million compared to a net loss of USD6.0m in the same period last year, while full-year loss totalled USD41.2m compared to USD69.8m a year ago.

Fourth-quarter sales - which include sales from the Invista polyester manufacturing assets acquired in September 2004 - rose 16.2 per cent to USD203.2m compared to USD174.8m last year. Full-year sales grew 19.7 per cent to USD799.4m.

Bill Lowe, chief operating officer and chief financial officer, said: "We are entering our 2006 fiscal year with one of the strongest balance sheets and business models in years, which will allow us to stay focused on executing our domestic and global growth strategies.

"Although the results posted on our income statement for our 2005 fiscal year were generally as expected, the significant progress on working capital reduction made during the fourth quarter leaves our balance sheet stronger than anticipated."

Unifi Inc is a diversified producer and processor of multi- filament polyester and nylon textured yarns and related raw materials.