Printer Friendly

DOMINION TEXTILE REPORTS FOURTH QUARTER AND YEAR-END RESULTS

 DOMINION TEXTILE REPORTS FOURTH QUARTER AND YEAR-END RESULTS
 MONTREAL, Aug. 11 /PRNewswire/ -- Fourth quarter results announced today by Dominion Textile Inc. (Montreal: DTX) show a strong improvement in sales and operating income, compared to the third quarter and the same period last year, reflecting the continuing recovery in the corporation's major businesses.
 Sales increased 7 percent to $383.2 million compared with $358.1 million in the last quarter of 1991. Income from operations rose by $26.2 million to $33.7 million compared with $7.5 million in 1991.
 While the corporation recorded stronger income from operations, the previously announced special charge related to revaluation of certain assets resulted in a consolidated net loss of $57.8 million for the period, or $1.71 per share, compared with a loss of $70.3 million or $2.14 per share a year ago.
 The $75 million non-recurring charge totalled $65 million after-tax, or $1.88 per share, and anticipates a book loss on the previously announced decision to sell Wayn-Tex Inc., a leading maker of carpetbacking and agricultural packaging. It also provides for a write- down of investments in associated companies to reflect realizable value. Finally, a small portion provides for the restructuring of certain Technical Fabrics operations in Europe. A charge of $68 million was recorded in fiscal 1991.
 Results in the fourth quarter include a net profit of $2 million related to a change in the year end of certain subsidiary companies from March 31 and May 31, to June 30. Sales and operating profits reported were not affected by the change, as the pretax income generated in the additional periods was included in 'other income' on the consolidated statement of income.
 Consolidated sales for the year increased 8 percent to reach $1,373 million, compared with $1,271.4 million in 1991. The effect of the special charge is reflected in a net loss of $74.8 million for the 12 months ended June 30, or $2.31 per share. This compares with a loss of $128.8 million, or $4.07 per share, in fiscal 1991.
 Operating income in fiscal 1992 showed a net improvement of more than $100 million over 1991 and reflected a strong recovery from one of the worst recessions in the history of the textile industry.
 "We're back operating in the black, thanks to cost cutting and a strong recovery in our major North American markets," said Charles H. Hantho, chairman, president and chief executive officer. "However, deteriorating conditions in some non-strategic businesses required us to make the special provision. With this behind us, we are looking forward to a return to profitability on an annual basis."
 Driving the recovery for Dominion in 1992 were continuing strong U.S. markets for denim, yarn and some industrial products. Denim sales rose 33 percent, and yarn sales over 19 percent, both with improved margins due to higher selling prices and lower raw material costs.
 The corporation's Industrial Products Group also performed well, with Poly-Bond posting a 29 percent sales increase for its non-woven products. Results for Dominion Industrial Fabrics Company decreased slightly, as a result of continued recessionary conditions in certain Canadian industrial markets.
 The lingering recession in Europe continued to depress results there, particularly in the apparel sector where soft markets and intense price competition have adversely affected the Klopman Group's results.
 Despite this difficult climate, the corporation's European denim operations recorded solid earnings and results from the Technical Fabrics Group remained stable.
 "The outlook for fiscal 1993 is favorable," said Hantho. "We expect a positive market to continue for denim and yarn in North America, as well as improved results in Europe, based on productivity and cost reduction programs."
 DOMINION TEXTILE INC.
 (in millions of dollars)
 Periods ended June 30 Three Months 12 Months
 1992 1991 1992 1991
 Sales $383.2 $358.1 $1,373.0 $1,271.4
 Income (loss) from
 operations 33.7 7.5 86.0 (15.0)
 Net loss (57.8) (70.3) (74.8) (128.8)
 Basic loss per common
 share $(1.71) $(2.14) $(2.31) $(4.07)
 -0- 8/11/92
 /CONTACT: Viviane Mattey of Dominion Textile, 514-989-6167/
 (DTX.) CO: Dominion Textile Inc. ST: Quebec IN: TEX SU: ERN


CK -- NY083 -- 9085 08/11/92 15:50 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 11, 1992
Words:713
Previous Article:DNR: FOREST PRACTICES BOARD TO MEET AUG. 12 IN OLYMPIA, WASH.; FIRST BOARD MEETING SINCE SUSTAINABLE FORESTRY PLAN ADOPTED IN JUNE
Next Article:PERRY INTRODUCES PROGRAM TO ASSURE DRUG POTENCY; WILL PRINT MEDICATION EXPIRATION DATE ON PRESCRIPTION LABELS
Topics:


Related Articles
DOMINION TEXTILE REPORTS SECOND QUARTER RESULTS
DOMINION TEXTILE ANNOUNCES SPECIAL CHARGE
DOMINION TEXTILE REPORTS FIRST QUARTER PROFIT
DOMINION TEXTILE REPORTS SECOND QUARTER RESULTS
DOMINION TEXTILE REPORTS FOURTH QUARTER AND YEAR-END RESULTS
DOMINION TEXTILE ANNOUNCES THIRD QUARTER RESULTS
DOMINION TEXTILE INC. POSTS STRONGER THIRD QUARTER RESULTS
DOMINION TEXTILE INC. ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS
DOMINION TEXTILE INC. TO REPORT LOWER FIRST QUARTER EARNINGS
Dominion Textile Inc. Announces Fourth Quarter And Year-End Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters