Collins & Aikman reports wider loss for first quarter on money-losing plants

TROY, Mich. (May 20)—Collins & Aikman Corp. reported a net loss of $28.7 million for the first quarter ended March 31, even as its sales increased 13 percent from the year-earlier period to $1.04 billion. The company's first-quarter loss last year was $18.4 million. The increased revenue during the most recent quarter stemmed from new program launches, increased content per vehicle, favorable currency exchange and sales from two first-quarter acquisitions, said President and CEO Jerry Mosingo. He attributed its profitability drop to a dozen plants that are "dragging down our overall financial performance." Collins & Aikman has given the 12 troubled plants, which did not include Collins & Aikman's mat-making operations in Holmesville and Canton, Ohio, or its rubber-mixing operations in Ravenna, Ohio, a short time frame to fix problems.