BURLINGTON IN BLACK FOR SECOND QUARTER
GREENSBORO, N.C. — After a year of struggling with restructuring costs, Burlington Industries reported a small profit of $554,000, or 1 cent a share, after run-out expenses in the second quarter ended April 1.
This compares with a net loss of $47.9 million in the fiscal 1999 second quarter.
Sales were $402.1 million, slightly under the $403.9 million reported in the prior year. According to the company, sales increases of 1.2 percent in continuing businesses were more than offset by the elimination of sales related to Burlington’s sportswear business, which was closed in the third quarter of fiscal 1999.
Second-quarter earnings of $1.6 million after tax, before run-out expenses related to restructuring, were 4 cents per share. In last year’s second quarter, excluding restructuring and run-out costs of $46.9 million after tax, the loss was 2 cents per share.
Second-quarter sales of CasualWear, which includes denim, were $55.3 million, slightly lower than the $56.3 million reported a year ago, and that segment reported a loss of $3.8 million, compared to a loss of $1.3 million a year ago. Sales of PerformanceWear rose to $152.7 million from $152.1 million a year ago, and had a profit of $9.3 million, compared to a loss of $8 million in the previous second quarter.
George W. Henderson 3d, chairman and chief executive, said of the results, “We are pleased that the company is returning to profitability after a very difficult year of restructuring and the costs associated with numerous strategic initiatives in our apparel fabrics segments. Our volume of business in both apparel and interior furnishings has improved in recent weeks, and we are forecasting higher operating rates in the third quarter.”
For the half, Burlington reported a loss of $4.8 million, or 9 cents a share, against a net loss of $39.9 million, or 70 cents a share for the first half of fiscal 1999.