Unifi raises 1st-quarter outlook

Unifi increases 1st-quarter guidance on improving trends in Brazil and domestically

• On 9:43 am EDT, Friday September 18, 2009

GREENSBORO, N.C. (AP) -- Unifi Inc., which makes polyester yarn, on Thursday said volume is improving domestically and in Brazil and raised its fiscal first-quarter guidance.

The company now expects adjusted earnings before interest, taxes, depreciation and amortization to be between $13 million to $14 million, up from an earlier estimate of $9 million to $11 million issued in July.

"Business conditions in our key segments have been better than anticipated, resulting in improved demand levels across the supply chain," said CEO Bill Jasper in a statement. The company's first quarter ended Sept. 27.

However, due to the weak economy, the company left its adjusted Ebitda guidance for fiscal year 2010 unchanged, at $40 million to $50 million, though it said it expects results to be at the high end of that range.

Unifi shares gained 28 cents, or 9.2 percent, to $3.34 in morning trading on Friday. It closed at $3.06 on Thursday, before the company updated its guidance.