TULTEX PREDICTS 30-40% DECLINE IN EARNINGS FOR THIRD QUARTER
MARTINSVILLE, Va. — Largely because of shipping delays, Tultex Corp. earnings in its third quarter ending Oct. 4 will be down 30 to 40 percent from year-ago earnings of $13 million, or 43 cents a share, the company said.
Wall Street was expecting the activewear manufacturer to earn 47 cents a share. Tultex stock slipped 5/8 to 6 Tuesday on the New York Stock Exchange.
Gross margins are expected to be hurt primarily by higher than anticipated production costs at both domestic and non-U.S. facilities.
“It is too soon to quantify the impact of these factors on our fourth quarter, but we expect to have a clearer sense of this by the time third quarter results are released on Oct. 23,” Charles W. Davies, president and chief executive officer, said in a statement.
Looking ahead, Davies said that fourth quarter new booking activity has improved over a year ago, and shipping delays are not expected to be repeated in the fourth quarter.
“For the long term we continue to have confidence in our strategies,” he said.