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DOMINION TEXTILE REPORTS THIRD QUARTER PROFIT

 DOMINION TEXTILE REPORTS THIRD QUARTER PROFIT
 MONTREAL, April 28 /PRNewswire/ -- Dominion Textile Inc. today


announced a profit for the third quarter of fiscal 1992, confirming a steady recovery that began in March 1991.
 The corporation posted net income of $2.1 million for the period ended March 31, compared to a net loss of $23.4 million for the corresponding period a year ago. Sales for the period totalled $338 million, up 12 percent from $302 million in 1991.
 On a nine month basis, the textile manufacturer reported a net loss of $17 million, or $0.60 per share, compared to $58.5 million or $1.93 per share the previous year. Sales for the year to date total $989.8 million, up from $913.3 million in 1991.
 Sales by the corporation's business units reflect current global economic conditions. Certain businesses continue to perform strongly in North America, particularly in the U.S., but the impact is partially offset by continuing poor business conditions in Europe which accounts for 29 percent of total sales.
 "The economic recovery generally speaking is taking longer than we expected," commented Charles H. Hantho, chairman, president and chief executive officer. "But it's happening. Strengthening markets in North America, combined with management's continuing focus on underperforming businesses, makes me cautiously optimistic regarding the balance of the year."
 Yarn and denim operations have paced the recovery for the third straight quarter. Technical and industrial fabrics remained relatively stable but the apparel business continues to suffer losses in Canada and overseas. A decline in the Canadian dollar over the period also enhanced earnings contributions.
 Sales by the Swift Denim Group rose 34 percent compared to the same period a year ago, a strong North American market being driven by fashion trends and innovation. Swift is excellently positioned to meet these opportunities with product quality, flexibility and delivery. Export operations which began with South American markets earlier this year were expanded to the Far East during the quarter.
 The Yarn Group enjoyed strong demand in what is normally the softest period of the year, resulting in a 28 percent increase in overall sales. Both specialty and commodity yarns enjoyed solid growth. Demand softened in Canada for commodity yarn with pricing competition from imports, but this was offset by increasing exports to the United States.
 Margins for both denim and yarn continued to improve from a combination of firm pricing and lower raw material costs.
 Sales by the Industrial Products Group rose 23 percent over the third period in 1991, excluding the results of Fiberworld which was shut down in December 1991. Both woven and nonwoven products showed signs of market growth and earnings at Poly-Bond grew significantly due to better pricing, cost performance and plant efficiencies.
 The market for Apparel Fabrics continued to have an adverse effect on the Corporation's activities overall. Sales volumes declined throughout the fiscal year and, although the industrial fabrics business appears to be recovering slowly in Canada, European markets remain depressed. Volume increases in workwear were tempered by severe pricing pressure and the retail leisurewear market remained weak throughout.
 Sales of Technical Fabrics showed marginal decline throughout the year, reflecting the current difficulties in apparel retailing in established European markets. Nonetheless, the group continues to make a consistent contribution to earnings.
 "Despite market conditions remaining mixed for the corporation as a whole, we have been able to capitalize on our areas of strength," said Hantho. "It is gratifying to see a return to a profitable status after such a prolonged difficult period. It indicates that our strategies are succeeding."
 "The outlook for the next three months is favorable in our major sectors of denim and yarn. Indications are good that our positive progress will be maintained through the final quarter."
 Management is committed to a program of portfolio restructuring to reduce debt and focus on fewer internationally competitive business opportunities. Recently plans were announced to explore options for our Yarn Group including sale or a public offering. Previously announced were the intent to sell the Wayn-Tex carpetbacking subsidiary in the U.S., the closure of the Fiberworld Canadian carpetbacking plant, and closure of the Canadian apparel fabrics operation.
 DOMINION TEXTILE INC.
 (In millions of dollars)
 Three months Nine months
 Period ended March 31 1992 1991 1992 1991
 Sales $338.0 $302.0 $989.8 $913.3
 Net Income (loss) 2.1 (23.4) (17.0) (58.5)
 Basic earnings (loss)
 per common share 0.03 (0.73) (0.60) (1.93)
 DOMINION TEXTILE INC.
 Consolidated Statement of Income
 (In thousands of dollars - Unaudited)
 Period ended March 31 1992 1991 1992 1991
 Sales $ 337,995 $ 302,042 $ 989,788$ 913,318
 Operating costs 313,748 310,878 937,572 935,890
 Income (loss) from
 operations 24,247 (8,836) 52,216 (22,572)
 Interest expense 16,741 14,849 50,655 44,726
 Income (loss) from operations
 after interest 7,506 (23,685) 1,561 (67,298)
 Share in net income from
 associated companies 1,307 1,123 4,633 3,342
 Other expenses (1,370) (3,758) (7,316) (7,425)
 Income (loss) before
 income taxes 7,443 (26,320) (1,122) (71,381)
 Income tax credits
 (expenses) (4,720) 3,768 (12,796) 16,244
 Total 2,723 (22,552) (13,915) (55,137)
 Minority interest (644) (846) (3,066) (3,384)
 Net income (loss) for the
 period 2,079 (23,398) (16,984) (58,521)
 Preferred dividends 1,270 1,293 3,887 4,050
 New income (loss) applicable
 to common shares $ 809 $ (24,691)$ (20,871)$(62,571)
 Average number of shares
 outstanding (in thousands) -- -- 34,578 32,481
 Earnings (loss) per common
 share - basic $ 0.05 $ (0.73)$ (0.60)$ (1.93)
 - fully diluted $ 0.03 $ (0.73)$ (0.60)$ (1.93)
 DOMINION TEXTILE INC.
 Condensed Consolidated Balance Sheet
 (In thousands of dollars - Unaudited)
 3/31/92 6/30/91
 ASSETS
 Current assets $498,190 $496,929
 Investments and advances 70,312 64,282
 Land, buildings and
 equipment 640,883 649,214
 Other assets 145,736 147,381
 Total $1,355,121 $1,357,806
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities 262,490 277,821
 Long-term debt 525,378 527,853
 Other non-current liabilities 44,645 38,238
 Deferred income taxes 26,390 17,712
 Minority interest in
 subsidiaries 62,302 59,825
 Shareholders' equity 433,916 436,357
 Total $1 ,355,121 $1,357,806
 DOMINION TEXTILE INC.
 Consolidated Statement Of Changes In Financial Position
 (In thousands of dollars - Unaudited)
 Nine months ended March 1992 1991
 OPERATING ACTIVITIES
 Net loss for the period $ (16,984) $ (58,521)
 Depreciation and amortization 54,308 56,871
 Financial expense, net of
 income taxes 35,516 35,897
 Deferred income taxes 8,123 (20,232)
 Other non-cash item 2,669 2,086
 Financial resources generated
 from earnings 83,632 16,101
 Changes in non-cash working
 capital (7,156) 3,299
 Foreign currency translation
 adjustment 19,906 4,653
 Resources generated from
 operations 96,382 24,053
 FINANCING ACTIVITIES
 Issue of Common shares 108 23,261
 Purchase of second preferred
 shares, Series C (10) (1,000)
 Increase (decrease) in long-
 term debt (37,286) 50,499
 Issue of Preferred shares by
 subsidiaries, net of redemption 0 (1,811)
 Resources generated from (applied
 to) financing activities (37,188) 70,949
 INVESTING ACTIVITIES
 Additions to fixed assets (19,410) (45,824)
 Other items 6,567 (6,221)
 Resources applied to investing
 activities (12,843) (52,045)
 PAYMENTS TO INVESTORS
 Dividends (3,887) (11,049)
 Financial expense, net of
 income taxes (35,516) (35,897)
 Payments to investors (39,403) (46,946)
 INCREASE (DECREASE) IN NET CASH
 POSITION $ 6,948 $ (3,989)
 Cash and term deposits $ (2,716) $ (17,286)
 Short term borrowings 9,664 13,297
 INCREASE (DECREASE) IN NET CASH
 POSITION $ 6,948 $ (3,989)
 CHANGES IN NON-CASH WORKING CAPITAL
 Decrease (increase) in current assets
 Accounts receivable $ (8,206) $ 22,655
 Income taxes recoverable (427) (2,565)
 Inventories 8,933 1,229
 Prepaid expenses (8,565) 894
 (Decrease) increase in current liabilities
 Accounts payable and accrued
 liabilities 313 (15,796)
 Dividends payable (46) (4,417)
 Income taxes payable 842 1,299
 Total $ (7,156) $ 3,299
 -0- 4/28/92
 /CONTACT: Viviane Mattey, vice president-investor relations and corporate taxation of Dominion Textile, 514-989-6167/
 (DTX.) CO: Dominion Textile Inc. ST: Quebec IN: TEX SU: ERN


SM -- NY122 -- 3985 04/28/92 16:11 EDT
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