LIDA SEES PROFIT IN 4TH QUARTER
NEW YORK — Lida Inc., hit by $3.4 million in extraordinary charges, lost $3.6 million in the third quarter ended Oct. 2. However, the company said it expected to turn a profit in the fourth quarter.
Lida showed a deficit of $3.1 million in working capital as of Oct. 2, but said its bankers have agreed to restructure existing loans and revolving credit facilities that would transform notes payable into long-term debt. The changes would bring working capital to $10 million.
Isaac Kier, chairman and chief executive officer, said the charges stemmed from discontinuation of its Frescamoda division, settlement of a shareholder suit, bad debt and a large case adjustment for worker’s compensation.
In the 1993 quarter, the vertically integrated converter lost $1.7 million, after a tax credit of $1.1 million.
Sales in the most recent quarter rose 12 percent to $22.3 million from $19.9 million.