Unifi Inc., a producer of polyester and nylon yarns, expects up to a 104.3 percent decrease in its third-quarter profit due to raw materials cost challenges and lower domestic demand.

The Greensboro-based company released a preliminary earnings report for its third quarter and expects profits to be between a net loss of $400,000 and a net income of $400,000, down significantly from net income of $9.1 million in the same quarter a year ago.

The company expects between a 2-cent loss per share and a 2 cents earnings per share for the quarter. This falls way below analyst expectations for earnings of 40 cents per share.

“We anticipated that raw material costs and a challenging domestic landscape would pressure third quarter gross margins, but the operating environment proved even more difficult,” Unifi CEO Kevin Hall said. “These headwinds led to a significant decline in profitability as compared to third quarter fiscal 2017.”

The profit decrease was spurred primarily by Unifi expecting up to an 83.5 percent decrease in its operating income. The company expects operating income to be between $1.5 million and $1.7 million, after reporting operating income of $9.1 million in the third quarter last year.

Unifi expects a 3.1 percent increase in revenue for the quarter, to approximately $166 million. This projection falls below analyst expectations of $172.8 million.

The company also provided an outlook for the rest of its fiscal year 2018, expecting sales performance to be consistent with its previous projections. However, Unifi said the factors that negatively impacted its third quarter earnings will continue to limit its profits in the short-term future.

Unifi’s shares were trading at $35.08 Wednesday at midday, a slight decrease from the day’s opening. The company’s stock hit its lowest closing price in over two months after the preliminary earnings report’s release Monday, at $34.59.

The filing can be found here.