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    Textile mill profits down, but not under

    Uncategorized | February 1, 2012 | By:

    During the 2008-2009 recession, many U.S. textile mills went into the red for a few quarters. In 2011, “all of the anticipated textile and apparel profit numbers look to remain solidly in the black,” according to Robert S. Reichard, economic editor for textileworld.com. Earnings in 2011 have been dragged down by the increased cost of cotton, other fibers, transportation, chemicals and dyes, says Reichard, but he sees some upbeat signs for the future of American mills. These include reduced consumer debt loads, a recovery of U.S. net worth over the recent recession, low interest rates, new government stimulus moves and the “huge amount of cash U.S. firms are sitting on.” Exports from China are fractionally lower every year, as internal inflation and rising currency crimps Chinese competition for U.S. consumer dollars.

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