GREENSBORO, N.C. — Difficulties in the printed apparel fabrics business were reflected in Galey & Lord’s otherwise upbeat first quarter results.
Even with depressed results in prints, the firm reported profits in the quarter ended Dec. 31 — excluding a year-ago accounting charge — rose 11.5 percent on a 28.4 percent jump in sales.
In the quarter, the firm earned $4.8 million, or 40 cents a share, against $4.3 million, or 36 cents, before last year’s accounting charge. After the $1.6 million charge, year-ago earnings were reduced to $2.7 million. Sales totaled $127.2 million against $99.1 million.
The company attributed the sales gain to a 10.2 percent increase in its woven sportswear fabrics division; 100 percent growth in its synthetic fabrics division, which features lightweight goods aimed at two-piece dressing, and the addition of $17.1 million in sales from the Home Fashion Fabrics division acquired from Burlington Industries in April 1994.
However, a 10.8 percent decline in printed apparel fabric sales, partially offset those gains. The company said that higher net income reflected improved operating margins, offset in part by a rise in interest expense. Income from operations grew to $10.9 million in the latest quarter from $8.4 million in the year-ago period.
While prints dogged the company, Arthur C. Wiener, chairman and chief executive officer, said Galey & Lord continues to see a strong demand in its woven sportswear and synthetic fabrics. — Fairchild News Service