WARNACO REVISES EARNINGS
NEW YORK — Warnaco Group again announced a downward revised earnings outlook for fiscal 2000 on Friday, while reporting that its lenders, including Salomon Smith Barney and Citibank, had agreed to extend up to $2.56 billion of credit through August of 2002.
As part of the agreement, the company said it will suspend future stock dividends following the payment of a previously declared cash dividend of 9 cents a share, payable on Oct. 5 to holders of record as of Sept. 6.
The company also said it will take a third-quarter charge of up to $60 million and expects to post operating losses, before charges and gains, in the third quarter and fiscal year 2000 because of slumping sales. Warnaco said it now expects to report an operating loss, before charges and investment gains, in the range of 25-30 cents a share for the 2000 fiscal year, compared to Wall Street estimates of a 28 cents profit, and a loss from 45-50 cents a share for the third quarter of the 2000 fiscal year, compared to a consensus analyst estimate of a loss of 23 cents.