GREENVILLE, S.C. — Delta Woodside Industries Inc. reported earnings — excluding a nonrecurring credit — dropped 60 percent in the third quarter ended April 2.
The textile and apparel producer earned $3.4 million, or 14 cents a share, in the quarter before the special gain, down from $9.3 million, or 35 cents, a year earlier.
Sales in the latest quarter slumped 12 percent to $155.2 million from $176.4 million. After $6.2 million pretax credit from litigation, Woodside’s net earnings for the latest quarter were up to $6.6 million, or 27 cents a share. The litigation credit involves the reversal of part of a $29.1 million award to a former Duck Head sales representative arising from a commission dispute.
The company lost $23.6 million in the nine months, reflecting litigation reserves of $27.1 million relating to the case and restructuring reserves of $12.1 million for the knit and Duck Head brand apparel division. In the year-ago nine months, earnings came to $21.9 million, or 82 cents a share.
Sales in the nine months declined 8.3 percent to $451 million from $492 million.