SPECIAL ITEMS PUT NET IN RED AT WESTPOINT
WESTPOINT, Ga. — Citing strong results at both its Home Fashions and Alamac Knits divisions, Westpoint Stevens Inc. posted fourth-quarter earnings of $15.2 million, or 45 cents a share, before hefty special items caused red ink to flow.
A $59.2 million charge for amortization of excess reorganization value and a writeoff of deferred financing fees of $5.4 million resulted in a net loss of $49.4 million for the quarter ended Dec. 31, 1994.
In the year-ago quarter, earnings before special items were $10.2 million, or 31 cents. After a similar $59.2 million charge for amortization of excess reorganization value, the net loss was $49 million.
Sales rose 8.4 percent to $424 million from $391 million. In the year, the company earned $38.9 million, or $1.15 a share, before a $236.9 million charge for amortization of excess reorganization value and the $5.4 million refinancing charge. After the charges, the company’s net loss was $203.4 million.
Year-ago earnings totaled $20.6 million, or 61 cents, before a $236.9 million charge for amortization of excess reorganization value and a $124 million after-tax restructuring charge. After these items, the net loss totaled $340.3 million. Sales rose 6.4 percent to $1.6 billion from $1.5 billion.
Holcombe T. Green, chairman and chief executive officer, said the outlook for 1995 is positive, adding, “We expect another year of substantial improvement.”
— Fairchild News Service