NEW YORK — Bankrupt Burlington Industries Inc. crawled back into the black in its fourth fiscal quarter, largely as a result of tax benefits, but reported a net loss for the fiscal year ended in September.
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Still, the Greensboro, N.C.-based textile mill’s top executives said they had completed substantial restructuring in the year that’s passed since they filed for Chapter 11 protection, and contend the mill will be on track to emerge from bankruptcy by the middle of next year.
For the quarter ended Sept. 28, the company reported net income of $36.1 million, or 67 cents a diluted share, compared with a $76.7 million net loss, or $1.46 a share, a year earlier. The income included $62.4 million in income tax benefits, as well as $21.1 million in pretax restructuring costs. Sales were $220.9 million, down 32.5 percent.
The company’s apparel fabrics operation narrowed its deficit, recording a $2.9 million loss before taxes, compared with a $13.1 million loss in the prior-year quarter. Sales at that unit fell 34.7 percent to $107.6 million.
The company’s carpet division, with pretax profits of $10.4 million, was the only unit to end the quarter in the black.
Chairman and chief executive George Henderson said in a statement that the company’s main focus this year has been “to restructure our operations and establish a new business model.”
“We have accomplished this by divesting or closing geographically disadvantaged assets, focusing our remaining assets on more profitable market niches and developing an international network of partner mills that will enable us to compete globally,” he said.
“Geographically disadvantaged” is the company’s euphemism for domestic manufacturing plants, which have had an incredibly difficult time competing with low-cost and high-efficiency plants springing up overseas to serve foreign apparel manufacturers.
The company said it cut its apparel fabrics manufacturing capacity by half this year. It has moved its apparel headquarters to Hong Kong, where the Burlington Worldwide division now sells apparel fabrics manufactured at Burlington’s plants in the U.S., Mexico and India, as well as fabrics made under contract by independent mills throughout Asia.
For the year, Burlington recorded a $100.8 million net loss, which came to $1.89 a diluted share, deeper than the $91.1 million, or $1.73 a share, deficit last year. The loss included $146.5 million in income tax benefits and $165.8 million in pretax restructuring charges. Sales slipped 29.2 percent to $993.3 million.