FRUIT OF THE LOOM NET OFF 33.7%
CHICAGO — Fruit of the Loom, hurt by declining margins, reported second-quarter earnings dropped 33.7 percent to $38.7 million, or 51 cents a share, from $58.4 million, or 77 cents, a year ago.
Sales in the quarter ended June 30 rose 21.5 percent to $635.2 million from $523 million, with core businesses up 11 percent. However, chairman and chief executive officer William Farley said, the company was not able to produce enough merchandise to meet all orders, and margins were hurt by price pressures and higher manufacturing and training costs. The firm cut back on production late last year and fired workers. When business picked up, it was not ready to meet demand. Farley said FTL will continue to run at full capacity for the rest of the year.