NEW YORK--Dan River Inc., riding explosive sales of wrinkle-resistant shirting fabrics, reported a 38 percent increase in earnings in the fourth quarter, and slightly more than double profits for the full year.
Dan River's bottom line was boosted by higher unit volumes and improved manufacturing efficiencies that offset higher raw materials costs, according to the firm's 10K, filed with the Securities and Exchange Commission. The company is privately held, but releases financial information because of public debt outstanding.
In the quarter ended Dec. 31, the Danville, Va.-based company earned $3.3 million, up from $2.4 million. Sales climbed 33.3 percent to $102.3 million from $76.7 million. Apparel fabric sales in the quarter surged 47 percent to $44.7 million, while home furnishings sales gained 24 percent to $57.6 million.
In the year, earnings surged to $7.3 million from $3.6 million. Sales advanced 17 percent to $371.5 million from $317.6 million. Apparel fabric sales gained 14.5 percent to $158.2 million while home furnishings sales advanced 18.8 percent to $213.3 million.
The apparel sales increases in the quarter and year were "almost entirely attributable" to higher unit sales in wrinkle-resistant shirting fabrics, the company said.
It noted prices of raw materials, specifically cotton and polyester, have increased significantly since the start of 1994, and the firm is seeking to increase selling prices to offset these costs.--Fairchild News Service

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