G&L GAINS $3.6 MILLION IN THE 4TH QUARTER
GREENSBORO, N.C. — Galey & Lord Inc., citing a continuing turnaround in its apparel fabrics business, logged a profit of $3.6 million, or 30 cents a share, in the fourth quarter ended Sept. 28.
In the 1995 quarter, the mill lost $5.5 million after a $7.4 million charge to close its printed apparel division a year ago.
Sales slipped 3.4 percent to $110.5 million from $114.4 million, but the year-ago period included $5.9 million in sales from the printed apparel business. Excluding the discontinued business, sales inched up 1.8 percent.
Gross margins improved to 11.6 percent of sales from 8.6 percent.
The company noted that order backlog on Sept. 28 was ahead 28 percent to $99 million from $77 million a year ago, carried by a hike of 48 percent by apparel fabrics. Backlog for home furnishings sank 25 percent.
Arthur C. Wiener, chairman and chief executive officer, said in a statement that since the first quarter the company has seen “steady improvement in all measures of our apparel business.”
In the full year, profits fell 18 percent to $10.5 million from $12.8 million a year ago, before special charges in both years.
Net earnings in the latest year were $9.5 million, or 80 cents a share, after a $1 million after-tax charge to terminate in the first quarter its proposed merger with Graniteville Co.
The prior year’s net income was reduced to $4 million, or 33 cents a share, after the charge to close its print business and a $1.3 million write-off of debt.
Sales fell 10.1 percent to $411.5 million from $502.2 million.