WestPoint's June loss at $30 million
GDA Staff -- Gifts & Dec, September 15, 2003
With sales tumbling and hit with a fistful of bankruptcy and restructuring charges, WestPoint Stevens, operating in bankruptcy since early in June, reported a loss for the month ended June 30 of $30.0 million, according to a filing with the Securities and Exchange Commission.
On an operating basis, the textiles giant actually recorded a modest operating profit of $3.4 million for the month. But that didn't last long after the company was hit by $39.6 million in restructuring and goodwill impairment charges; $4.7 million in interest expense; Chapter 11 expenses of $6.5 million; net miscellaneous expenses of $1.2 million. Additionally, acting as a partial offset was an income-tax benefit of $16.8 million stemming from earlier losses.
Average gross margin for the month totaled 14.8 percent, weakening from the prior two months. For the entire second quarter, the company recorded a stronger 15.8 percent margin.
Expenses for the period totaled 12.3 percent of sales, a substantial improvement over the 16.7 per cent expense ratio recorded for the entire second quarter.
Now reporting results on a monthly basis while in bankruptcy, the major mill is expected to report July results later this month.
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