International Textile Group, Inc. Business Report FY ended Dec. 2014

Financial Overview

(in million USD)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	Rate of change (%)	Factors
Overall
Net Sales	595.4	600.1	(0.8)	1)
Operating Income	25.8	36.8	(29.9)	2)
Sales by Segment
Bottom-weight Woven Fabrics	563.2	578.3	(2.6)	-

Note: In September 2014, the Company completed the sale of its narrow fabrics business, which produces webbing for seat belts among other products.

Factors
1) Net Sales
-The Company's net sales in 2014 decreased by 0.8% to USD 595.4 million. The decrease in sales was primarily due to lower volume resulting from competitive pressures in the denim and airbag fabrics businesses, lower volume with worsted wool retail customers, and governmental budget constraints and program changes affecting certain municipal and foreign military uniform fabrics businesses, as well as lower selling prices and a less favorable product mix primarily in the U.S. government, worsted wool and synthetic fabrics businesses.

2) Operating Income
-In 2014, the Company's operating income fell 29.9% to USD 25.8 million primarily due to the lower gross profit margins as well as higher restructuring charges and higher selling and administrative expenses.

Divestiture

-In September 2014, the Company completed the sale of its narrow fabrics business Narricot Industries to AEC Narrow Fabrics (AEC), which is a privately-held, narrow fabrics manufacturer with its headquarters in Asheboro, NC, U.S.

R&D Expenditure

(in million USD)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Total	6.2	6.6	6.6

Capital Expenditure

(in million USD)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Total	6.7	4.9	2.0

-The Company projects its capital expenditures in 2015 to range between USD 10.0 million and USD 12.0 million.

Data

Number of Employees

	Dec. 2014	Dec. 2013	Dec. 2012
Total	4,650	4,800	4,800

Sales by Segment

(in million USD)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Bottom-weight Woven Fabrics	563.2	578.3	566.3
Commission Finishing	31.7	21.3	30.9
* Narrow Fabrics	-	-	26.8
Other	0.9	1.0	1.0
Intersegment Sales	(0.3)	(0.5)	(6.0)
Total	595.4	600.1	619.1