SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of Report (Date of earliest event reported): May 17, 1996
COLLINS & AIKMAN CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-10218 13-3489233
(State or other (Commission File Number) (IRS Employee
jurisdiction Identification No.)
of incorporation)
701 McCullough Drive
Charlotte, North Carolina 28262
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (704) 547-
8500
<PAGE>
Item 5. Other Events
(a) On May 17, 1996, Collins & Aikman Corporation
(the "Company") reported operating results for the quarter ended
April 27, 1996 and also announced a proposed offering of $400
million of debt securities of its wholly-owned subsidiary,
Collins & Aikman Products Co.
For further information see the Company's Press
Release dated May 17, 1996, which is hereby incorporated herein
by reference.
Item 7. Financial Statements and Exhibits
(c) The exhibits furnished in connection with this
report are as follows:
99.1 - Press Release dated May 17, 1996.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report
to be signed on its behalf by the undersigned thereunto duly
authorized.
COLLINS & AIKMAN CORPORATION
(Registrant)
Date: May 17, 1996 By: /s/ J. Michael Stepp
J. Michael Stepp
Executive Vice President
& Chief Financial Officer
Exhibit 99.1
NEWS RELEASE
Contact: Steven Bower
Director, Investor Relations
(704) 548-2382
COLLINS & AIKMAN ANNOUNCES
FIRST QUARTER OPERATING RESULTS AND
PROPOSES OFFERING OF $400 MILLION OF DEBT SECURITIES
Charlotte, NC -- May 17, 1996 -- Collins & Aikman
Corporation (NYSE:CKC) reported today operating results for the
first quarter ended April 27, 1996 and announced the proposed
offering of $400 million of debt securities by its wholly-owned
subsidiary, Collins & Aikman Products Co.
Sales for the quarter increased to $373.6 million compared
to $334.9 million in the first quarter of fiscal 1995. Operating
income for the first quarter of fiscal 1996 was $40.6 million
compared to $42.3 million in the first quarter of fiscal 1995.
Sales of the Automotive Products segment increased from
$243.7 million to $282.7 million principally due to the
acquisition of Manchester Plastics in January, 1996. As
previously reported, the General Motors strike in March,
1996 impacted first quarter sales by approximately $17 million.
Operating income of the Automotive Products segment declined from
$31.1 million to $30.1 million principally as a result of the
strike.
Sales of the Interior Furnishings segment declined from
$91.2 million to $90.9 million and operating income declined from
$11.2 million to $10.5 million.
Operating data tables for the Company's Automotive Products
and Interior Furnishings segments are included at the end of this
release. Complete financial results will be issued on or about
June 6, 1996.
<PAGE>
Collins & Aikman Corporation also announced today that its
wholly-owned subsidiary, Collins & Aikman Products Co., proposes
to offer $400 million principal amount of Senior Subordinated
Notes, which will be guaranteed by Collins & Aikman Corporation,
through a group of underwriters managed by Wasserstein Perella
Securities, Inc., Chase Securities Inc. and BA Securities,
Inc. The Notes will be offered pursuant to an effective shelf
registration statement.
Collins & Aikman intends to use the net proceeds of the
offering to repay a portion of its outstanding bank indebtedness
and for general corporate purposes, including working capital,
capital expenditures and acquisitions.
Collins & Aikman Corporation is a major supplier of textile
and plastic interior trim products and convertible top systems to
the North American automotive industry. The company is also a
leading manufacturer of residential upholstery fabric, as well as
a major provider of commercial carpet in the United States.
This announcement does not constitute an offer to sell or a
solicitation of an offer to buy these securities. The offering
is made only by the prospectus supplement and the prospectus to
which it relates. Copies of the preliminary prospectus
supplement and prospectus relating to the offering will
be available from the company in any state in which these
securities may lawfully be offered. Contact: Investor Relations
Department, Collins & Aikman Corporation, 701 McCullough Drive,
Charlotte, NC 28262 (704) 548-2382.
<PAGE>
Automotive Products
Quarter Ended
April 27, 1996 April 29, 1995
$ % $ %
Net sales $ 282,702 100.0 $ 243,694 100.0%
Cost of goods sold 230,829 81.7 197,966 81.2
Gross margin 51,873 18.3 45,728 18.8
S,G&A 21,727 7.6 14,648 6.0
Operating income $ 30,146 10.7% $ 31,080 12.8%
EBITDA $ 38,685 13.7% $ 37,587 15.4%
Interior Furnishings
Quarter Ended
April 27, 1996 April 29, 1995
$ % $ %
Net sales $ 90,909 100.0% $ 91,196 100.0%
Cost of goods sold 64,827 71.3 63,341 69.5
Gross margin 26,082 28.7 27,855 30.5
S,G&A 15,621 17.2 16,659 18.2
Operating income $ 10,461 11.5% $ 11,196 12.3%
EBITDA $ 13,412 14.8% $ 14,674 16.1%
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