MARTINSVILLE, Va. — Helped by a $2.7 million special gain from the sale of a yarn facility, profits at Tultex Corp. climbed to $9.5 million, or 31 cents a share, in the fourth quarter, from $2.2 million, or 6 cents, a year ago.
Sales rose 8.4 percent to $168.3 million from $155.2 million. Sales of activewear grew 18 percent in the latest quarter.
In the year ended Dec. 31, Tultex earned $9 million, or 26 cents, against $5.9 million, or 16 cents, a year ago. Sales were up 6 percent to $565.4 million from $533.6 million.
Charles W. Davies, president and chief executive officer, said, “1994 has been a year of recovery, and we are pleased with performance relative to inventory control and sales of our activewear products.”
The company reduced consolidated inventories by $27 million, or 17 percent, and cut total debt by $23 million, or 10 percent.
However, he added that the hockey and baseball strikes hurt the company’s licensed sports apparel business in the fourth quarter. Davies continued, “We expect those effects to continue through the first half of 1995.”
Davies noted that despite weakness in licensed apparel, Tultex has begun 1995 “on a more positive note than a year earlier.” He highlighted leaner inventories, plants running at full capacity to meet increased demand, price increases and reduced manufacturing costs and debt.
He added, “We are also seeing the benefit of our increased marketing efforts as combined sales of Discus Athletic and Logo Athletic brands doubled in 1994 over 1993.”
Tultex also manufactures activewear and licensed sports apparel under the Tultex and Logo 7 brand names. — Fairchild News Service