Unifi Inc. shares fell by as much as 7.5 percent on Wednesday morning after the Greensboro-based company reported that earnings declined and that it had exited a profitable joint venture.

Earnings in the quarter were $4.59 million, of 25 cents per share, down 29 percent from the same quarter a year ago.

Unifi also took a $1.66 million loss from selling its 60 percent stake in Repreve Renewables LLC during the quarter that ended Dec. 25. The divestiture reduced the company’s debt by $4 million.

The company’s net sales, adversely impacted by a decline in raw material prices, were $155.1 million for the second quarter, compared to net sales of $156.3 million for the second quarter of fiscal 2016.

“In the short-term, we expect margin pressure in the international segment due to increased import tariffs on raw materials for our Brazilian operations, and we expect domestic market conditions to remain difficult,” said President Tom Caudle in a statement. As a result, we now expect fiscal 2017 results to be broadly consistent with fiscal 2016.”

Caudle was promoted from vice president of manufacturing to chief executive in an abrupt management turnover in April of last year.

North Carolina is home to the largest textile mill industry in the U.S., employing over 27,500 in more than 700 textile manufacturing facilities.

Boone, N.C.-based Frontier Spinning Mills and Greensboro-based Burlington Industries, private companies, are two of Unifi’s competitors. Another competitor, Israel-based Spuntech Industries, has a 20,000-square meter site in Roxboro, N.C.

Unifi “texturizes” raw polyester fibers—an intermediate step between manufacturing the synthetic material and weaving it into fabric. The company produces the raw fibers too.

Unifi trades on the NYSE under the ticker UFI. The company has a 12-month low of $20.71 and a 12-month high of $34.70. It was trading at $30.62, down 2.6 percent, in late Wednesday trading.

The company’s earnings can be found here.