FORSTMANN FACES LARGER LOSS: A combination of higher wool prices, higher interest rates and sluggish sales of women’s outerwear fabric will produce sharply lower earnings in fiscal 1994 and a large fourth-quarter loss at Forstmann & Co.
The company said Friday it expected to report net income applicable to common shares for the year ended Oct. 31 of 50 to 60 cents a share compared with $1.15 in fiscal 1993. In the nine months to July 31, Forstmann earned $6.4 million, or $1.15 a share, indicating a fourth-quarter loss of 55 cents to 65 cents a share. The firm lost 22 cents in the year-ago fourth quarter.
Sales for the year are expected to be up slightly from $233 million in 1993, and operating income is seen declining to the range of $22 million to $24 million, against $26.6 million.
Because of higher rates and increased borrowing, interest costs in 1994 will be about $1.8 million higher than last year. William B. Towne, chief financial officer, said that increase translated into 10 cents a share for the quarter and about 18 cents for the full year. He estimated that the increase in wool prices took another 10 cents off 1994 earnings.
Towne said the warm weather had cut into retail sales of outerwear “and that has backed up to us.” He added that he expected earnings to be much better next year than in 1994.
Audited results for fiscal 1994 are scheduled to be released in early January.
AMICALE-FEIN, PART TWO: Amicale Industries, New York, the world’s largest dehairer and comber of cashmere and camel hair, has acquired the remaining 50 percent interest in W. Fein & Sons Ltd., Bradford, West Yorkshire, England, one of Europe’s largest combers and dehairers of the two luxury fibers. Terms of the deal were not disclosed.
As reported, in January, Amicale acquired 50 percent of W. Fein.
Boris Shlomm, president of Amicale, has added the new post of chairman of W. Fein; the present operating officers — David Lee, managing director, and David Mallin, managing director of sales — will remain in their current posts.
Alexander Shlomm, vice president of Amicale, will act as a liaison officerbetween the U.S. and U.K. companies.
With the acquisition, Amicale now has three luxury-fiber processing mills: in Charlotte, Va.; in Bradford, and one in Mongolia as part of a government-sponsored joint venture with the Mongolian Ministry of Trade and Industry.
Shlomm would not divulge Fein’s sales figures.