Tefron Announces Streamlining Measures
March 02 2009 - 10:08AM
PR Newswire (US)
MISGAV, Israel, March 2 /PRNewswire-FirstCall/ -- Tefron Ltd.
(OTC:TFRFF )(TASE:TFRN), a leading producer of seamless intimate
apparel and engineered-for-performance (EFPTM) active wear, today
announced that in terms of its work plan for 2009 and as a result
of the slowdown in global economy, the Company's Board of Directors
has approved a streamlining process across all areas of activity.
The elements of the plan are as follows: 1. Optimizing and
combining production processes, including combining production
sites in Jordan, increasing the efficiency of the knitting process,
reducing manufacturing costs, including a headcount reduction at
the Company of around 15%. 2. Expansion of marketing activities in
Europe. 3. Marketing to local customers as well as opening a
factory store for selling surplus in Israel, as part of the
strategy to deal with surplus inventory. The Company expects that
these steps will reduce the effects of the global economic
situation on operations, as well allowing the matching of the
Company's resources to the anticipated level of activities in the
coming year. This, all the while maintaining Tefron's competitive
advantages and profitability once the global economic situation
improves. About Tefron Tefron manufactures boutique-quality
everyday seamless intimate apparel, active-wear and swimwear sold
throughout the world by such name-brand marketers as Victoria's
Secret, Nike, Target, The Gap, J. C. Penney, lululemon athletica,
Warnaco/Calvin Klein, Patagonia, Reebok, Swimwear Anywhere,
Abercombie&Fitch, and El Corte Englese, as well as other well
known retailers and designer labels. The company's product line
includes knitted briefs, bras, tank tops, boxers, leggings, crop,
T-shirts, nightwear, bodysuits, swimwear, beach wear and
active-wear. This press release contains certain forward-looking
statements, within the meaning of Section 27A of the US Securities
Act of 1933, as amended, Section 21E of the US Securities Exchange
Act of 1934, as amended, and the safe harbor provisions of the US
Private Securities Litigation Reform Act of 1995, with respect to
the Company's business, financial condition and results of
operations. We have based these forward-looking statements on our
current expectations and projections about future events. Words
such as "believe," "anticipate," "expect," "intend," "will,"
"plan," "could," "may," "project," "goal," "target," and similar
expressions often identify forward-looking statements but are not
the only way we identify these statements. Except for statements of
historical fact contained herein, the matters set forth in this
press release regarding our future performance, plans to increase
revenues or margins and any statements regarding other future
events or future prospects are forward-looking statements. These
forward looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those
contemplated in such forward-looking statements, including, but not
limited to: - our customers' continued purchase of our products in
the same volumes or on the same terms; - the cyclical nature of the
clothing retail industry and the ongoing changes in fashion
preferences; - the competitive nature of the markets in which we
operate, including the ability of our competitors to enter into and
compete in the seamless market in which we operate; - fluctuations
in inflation and currency rates; - the potential adverse effect on
our business resulting from our international operations, including
increased custom duties and import quotas (e.g., in China, where we
manufacture for our swimwear division); - the potential adverse
effect on our future operating efficiency resulting from our
expansion into new product lines with more complicated products,
different raw materials and changes in market trends; - the
purchase of new equipment that may be necessary as a result of our
expansion into new product lines; - our dependence on our suppliers
for our machinery and the maintenance of our machinery; - the
fluctuations costs of raw materials; - our dependence on
subcontractors in connection with our manufacturing process; - our
failure to generate sufficient cash from our operations to pay our
debt; and - political, economic, social, climatic risks, associated
with international business and relating to operations in Israel;
As well as certain other risks detailed from time to time in the
Company's filings with the Securities and Exchange Commission. The
Company undertakes no obligation to publicly release any revisions
to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. Contacts Company Contact: Eran Rotem Chief
Financial Officer +972-4-9900803 IR Contact: Ehud Helft / Kenny
Green G.K. Investor Relations +1-646-201-9246 DATASOURCE: Tefron
Ltd CONTACT: Company Contact: Eran Rotem, Chief Financial Officer,
+972-4-9900803, ; IR Contact: Ehud Helft / Kenny Green, G.K.
Investor Relations, +1-646-201-9246,
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