NEW YORK–WestPoint Home, the home-fashions unit of Icahn Enterprises, posted a $158.1 million loss for 2007, compared with a $143.4 million loss for 2006.
Net sales for the unit finished last year at $683.7 million, down 23.2 percent from 2006. In its 10-K filing with the U.S. Securities and Exchange Commission, Icahn Enterprises said WestPoint’s 2007 fiscal year was characterized by “a challenging combination of efforts to reduce revenue from less-profitable programs, a weaker home-textile retail environment, competition from other manufacturers, repositioning WPI’s manufacturing operations offshore and realigning selling, general and administrative expenditures.” Regarding the latter element, WestPoint was able to reduce selling, general and administrative expenses by 14.6 percent last year.
According to the filing, 2008 promises to be more of the same, shaping up as “a challenging year” for WestPoint’s retail customers. While the company will continue its cost-reduction and restructuring efforts, Icahn Enterprises predicted that WestPoint will continue to operate at a loss this year.