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Collins & Aikman Announces First Quarter 2001 Results

    TROY, Mich.--May 8, 2001--Collins & Aikman Corporation today reported results for its first quarter ended March 31, 2001. For the current fiscal quarter, the Company reported sales of $453.1 million, and excluding special charges, operating income was $20.6 million, resulting in a net loss of ($3.0) million, or ($0.04) per share.
    Special charges incurred for the quarter included $9.2 million ($4.1 million net of tax) for restructuring costs and an extraordinary after-tax charge of $0.3 million for the early redemption of $48 million in JPS Automotive 11-1/8% Senior Notes.

    Recent Highlights Include:

-- Heartland acquired 60% of Collins & Aikman common stock through its $260 million investment -- Strong partner for growth capital.
-- Early redemption of remaining JPS Automotive Senior Notes -- Favorable interest rate arbitrage and improvement in liquidity.
-- Announced Letter of Intent to acquire Becker Group -- Continuing transformation into a world-class "Mega Tier 2" automotive supplier.
-- Announced Letter of Intent to acquire the automotive operations of Joan Fabrics -- Creating the "best-of-the-best" in terms of automotive textile people, plants and equipment.
-- Announced summer release of new COMET(TM) Version 5.0 Software
-- Further enabling global automotive manufacturers to develop industry-leading quiet vehicles.

    Commenting on the Company's first quarter results, Collins & Aikman's Chairman and Chief Executive Officer, Thomas E. Evans stated, "Although Collins & Aikman's core operating performance exceeded external expectations, from my vantage point, we're still not where we need to be. This is the primary driver for our $9.2 million restructuring program, which we anticipate will generate annual savings of at least $10 to $12 million by 2002. Accordingly, in spite of the ongoing challenges presented by the current industry operating environment, Collins & Aikman continues to do what it takes in order to become leaner and more efficient."

    First Quarter Performance Highlights
    For the first quarter 2001, the Company reported a net loss of ($7.4) million, or ($0.10) per common share, versus net income of $7.0 million, or $0.11 per common share in the first quarter of 2000. Excluding the previously mentioned special charges, the Company would have reported a net loss in the current quarter of $3.0 million, or ($0.04) per share. Operating income for the current quarter was $11.4 million, and excluding restructuring costs, would have been $20.6 million, as compared to $40.2 million for the first quarter of 2000. Sales for the current quarter were $453.1 million versus $534.8 million in the year ago period. The decline in both sales and operating income is primarily attributable to a 15 percent decline in North American production volumes.
    As part of the change in control of the Company during the current quarter, 25 million shares of Collins & Aikman common stock were issued to Heartland Industrial Partners, L.P., resulting in total outstanding shares increasing to 87 million. On a weighted average basis, the Company had approximately 71.3 million shares outstanding in the 2001 first quarter versus 61.9 million shares in the year ago period.

    North American Automotive Interior Systems
    For the current quarter, the Company's North American Automotive Interiors Systems (NAAIS) Division reported sales of $272.6 million versus sales of $326.6 million in the year ago period, while operating income for NAAIS in the current quarter was $16.2 million, as compared to $28.3 million in the year ago period. The declines in both sales and operating income were primarily due to the previously mentioned North American industry production decline.

    European Automotive Interior Systems
    The Company's European Automotive Interiors Systems (EAIS) Division reported first quarter 2001 sales and operating income of $71.2 million and $0.5 million, respectively, versus $86.2 million and $2.4 million in the first quarter of fiscal 2000. The decline in sales and operating income primarily reflects the impact of a four percent decrease in European production build and the negative impact of foreign currency translation, which reduced sales by approximately $7.0 million.

    Specialty Automotive Products
    The Company's Specialty Automotive Products Division reported sales and operating income for the first quarter 2001 of $109.3 million and $5.2 million, respectively, versus $121.9 million and $10.9 million in the first quarter of fiscal 2000. In addition to the previously mentioned North American production effect, operating margins in the current quarter were negatively impacted by launch costs for new convertible programs.

    Evans continued, "As we move forward in 2001, we remain committed to improving and strengthening the long-term earnings power of Collins & Aikman. By continuing to implement aggressive cost reductions, developing new products and capitalizing on the potential benefits of our recently announced acquisition plans for the Becker Group and Joan Automotive, we should be able to achieve this goal and simultaneously enhance our "Mega Tier 2" position. With this strategy, and the support of all our global associates, I believe that we will be able to grow our business, lower our cost structure and return increased value to all of Collins & Aikman's stakeholders."


             COLLINS & AIKMAN CORPORATION AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (Unaudited)
               (in thousands, except for per share data)


                                            Three Months Ended
                                    ----------------------------------
                                               Adjusted (1)
                                    March 31,    March 31,    April 1,
                                      2001         2001        2000 
                                    (13 weeks)  (13 weeks)  (14 weeks)
                                    ----------  ----------  ----------
Net sales                           $ 453,097   $ 453,097   $ 534,761
Cost of goods sold                    394,341     394,341     451,046
                                    ----------  ----------  ----------
Gross profit                           58,756      58,756      83,715
Selling, general and
 administrative expenses               38,162      38,162      43,553
Restructuring charge                    9,200        --          --
                                    ----------  ----------  ----------
Operating income                       11,394      20,594      40,162

Interest expense, net                  23,269      23,269      25,062
Loss on sale of receivables             1,393       1,393       3,818
Other expense (income)                  1,722       1,722      (1,079)
                                    ----------  ----------  ----------
Income (loss) before income taxes     (14,990)     (5,790)     12,361
Income tax expense (benefit)           (7,886)     (2,750)      5,347
                                    ----------  ----------  ----------
Income (loss) before
 extraordinary charge                  (7,104)     (3,040)      7,014

Extraordinary charge, net
 of income taxes of $227                 (340)       --          --
                                    ----------  ----------  ----------
Net income (loss)                   $  (7,444)  $  (3,040)  $   7,014
                                    ==========  ==========  ==========
Net income (loss) per
 basic and diluted common share:
  Continuing operations                 (0.10)      (0.04)  $    0.11
                                                                
  Extraordinary charge                   --          --          --
                                    ----------  ----------  ----------
Net income (loss)                   $   (0.10)      (0.04)  $    0.11
                                    ==========  ==========  ==========
Average common shares outstanding:
  Basic                                71,328      71,328      61,889
                                    ==========  ==========  ==========
  Diluted                              71,328      71,328      62,365
                                    ==========  ==========  ==========


(1) Excludes restructuring charge and extraordinary charge for debt
    retirement.



             COLLINS & AIKMAN CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS
                            (in thousands)



                                         (Unaudited)
                                           March 31,   December 31,
                  ASSETS                     2001         2000
                                         -----------   -----------
Current Assets:
   Cash and cash equivalents             $    23,375   $    20,862
   Accounts and other receivables, net       201,936       196,451
   Inventories                               125,504       131,720
   Other                                      74,742        75,852
                                         -----------   -----------
     Total current assets                    425,557       424,885

Property, plant and equipment, net           423,770       434,147
Deferred tax assets                          102,555        97,314
Goodwill, net                                247,503       245,509
Other assets                                  81,792        78,435
                                         -----------   -----------
                                         $ 1,281,177   $ 1,280,290
                                         ===========   ===========

          LIABILITIES AND COMMON
          STOCKHOLDERS' DEFICIT
Current Liabilities:
   Short-term borrowings                 $     3,467   $     3,835
   Current maturities of long-term debt       38,005        84,302
   Accounts payable                          150,456       178,483
   Accrued expenses                          137,675       123,109
                                         -----------   -----------
     Total current liabilities               329,603       389,729

Long-term debt                               783,211       799,677
Other, including post-retirement
 benefit obligation                          233,002       245,870
Commitments and contingencies

Common stock (300,000 shares
 authorized, 87,099 shares
 issued and 87,097 shares
 outstanding at March 31, 2001
 and 70,521 shares issued and
 62,024 shares outstanding at                    871           705
 December 31, 2000)
Other paid-in capital                        629,545       585,481
Accumulated deficit                         (644,084)     (636,640)
Accumulated other comprehensive loss         (50,959)      (42,924)
Treasury stock, at cost (2 shares
 at March 31, 2001 and 8,497 shares
 at December 31, 2000)                           (12)      (61,608)
                                         -----------   -----------
     Total common stockholders' deficit      (64,639)     (154,986)
                                         -----------   -----------
                                         $ 1,281,177   $ 1,280,290
                                         ===========   ===========




             COLLINS & AIKMAN CORPORATION AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                       (Unaudited, in thousands)



                                                Quarter Ended
                                            ---------------------
                                             March 31,   April 1,
                                               2001        2000
                                            (13 weeks)  (14 weeks)
                                            ----------  ---------

OPERATING ACTIVITIES
Income (loss) from continuing operations    $  (7,104)  $   7,014
  Adjustments to derive cash flow
   from continuing operating
   activities:
     Deferred income tax expense (benefit)     (5,468)      2,143
     Depreciation and amortization             20,093      18,761
     Decrease (increase) in accounts and
      other receivables                       (12,223)      9,392
     Decrease (increase) in inventories         7,789      (4,909)
     Decrease in accounts payable             (30,014)    (10,325)
     Increase in interest payable              10,292      14,910
     Other, net                                (2,676)     31,969
                                            ----------  ---------
       Net cash provided by (used in)
        continuing operating activities       (19,311)     68,955
                                            ----------  ---------
Net cash used in discontinued operations       (3,335)     (3,188)
                                            ----------  ---------
INVESTING ACTIVITIES
Additions to property, plant and equipment    (10,629)    (15,095)
Sales of property, plant and equipment           --            74
Acquisitions, net of cash acquired             (7,341)      --
                                            ----------  ---------
       Net cash used in
        investing activities                  (17,970)    (15,021)
                                            ----------  ---------
FINANCING ACTIVITIES
Issuance of long-term debt                     50,000        --
Debt issuance costs                           (10,747)       --
Repayment of long-term debt                   (55,743)    (13,676)
Proceeds from (reduction of) participating
 interests in accounts receivable               8,864      (4,651)
Repayments on revolving credit facilities     (55,244)    (10,463)
Increase in short-term borrowings                 392       5,678
Purchase of treasury stock, net                  --         (136)
Proceeds from issuance of stock               105,323        --
Other, net                                        284        --
                                            ----------  ---------
       Net cash provided by (used in)
        financing activities                   43,129     (23,248)
                                            ----------  ---------

Net increase in cash and cash equivalents       2,513      27,498
Cash and cash equivalents at beginning
 of period                                     20,862      13,980
                                            ----------  ---------
Cash and cash equivalents at end of period  $  23,375   $  41,478
                                            ==========  =========




             COLLINS & AIKMAN CORPORATION AND SUBSIDIARIES
              FIRST QUARTER 2001 - SUPPLEMENTAL SCHEDULE
                 (Unaudited - in millions, except CPV)



SALES DATA:
-----------
                                               Quarter Ended
                                   -----------------------------------
 DIVISION:                          March 31, 2001       April 1, 2000
                                     (13 weeks)           (14 weeks)
                                   ---------------     ---------------
 North American Automotive 
  Interior Systems                      $273                 $327
 European Automotive
  Interior Systems                        71                   86
 Specialty Automotive Products           109                  122
                                   ---------------     ---------------

 Total                                  $453                 $535
                                   ===============     ===============



OPERATING INCOME (LOSS)(a):
---------------------------
                                                Quarter Ended
                                   -----------------------------------
 DIVISION:                          March 31, 2001       April 1, 2000
                                      (13 weeks)           (14 weeks)
                                   ---------------     ---------------
 North American Automotive 
  Interior Systems                       $16                  $28
 European Automotive
  Interior Systems                         1                    2
 Specialty Automotive Products             5                   11
 Other                                    (1)                  (1)
                                   ---------------     ---------------

 Total                                  $ 21                  $40
                                   ===============     ===============




STATISTICAL DATA:
-----------------
                                                Quarter Ended
                                   -----------------------------------
                                    March 31, 2001       April 1, 2000
                                      (13 weeks)           (14 weeks)
                                   ---------------     ---------------
 EUROPEAN CPV                            $14                  $17
 N. AMERICAN CPV                         $91                  $91
 EBITDA (a)                              $41                  $59
 CAPITAL EXPENDITURES                    $11                  $15


(a) 2001 Excludes restructuring charge of $9.2 million, $4.1 million
    or $0.06 per share after-tax.