FIELDCREST CANNON REPORTS EARNINGS
FIELDCREST CANNON REPORTS EARNINGS GREENSBORO, N.C., April 22 /PRNewswire/ -- Fieldcrest Cannon, Inc.
(NYSE: FLD), today announced that sales in the first quarter of 1992 were $271.4 million compared to $260.6 million in the first quarter of last year, an increase of 4 percent. Bed and bath product sales for the first quarter of 1992 increased 7 percent over the same quarter last year while carpet and rug sales decreased 5 percent. Net income of $.6 million, or $.06 per share, was earned in the quarter. This compares to a loss of $3.5 million, or $.34 per share, for the first quarter of 1991.
Bed and bath division operating income for the first quarter of 1992 increased from the 1991 level. The higher operating income resulted from lower cotton costs, increased sales and higher mill activity levels. Wage increases and other cost increases have been partially offset by cost reductions. The 1992 expenses also include $1.2 million of costs related to the consolidation of New York sales offices, which will result in substantial future savings. Carpet and rug division operating income improved significantly from the 1991 level. The division has de-emphasized the lower-end, commodity price points in both residential and commercial markets. This has increased average selling prices and enhanced profit margins as emphasis is placed on the medium-to-high end segment of these markets. In addition, continued cost reduction efforts increased division operating income. The company received commitments from four financial institutions to underwrite a $235 million revolving credit facility, replacing the revolving credit loan agreement which matures Dec. 31, 1992. The new facility is expected to close in late May and expires on Dec. 31, 1995. Inventories were $275.1 million at the end of the first quarter compared to $241.9 million last year. March 31, 1992, inventories included $18.2 million of cotton and wool under a product financing arrangement which was not included at March 31, 1991. The remainder of the increase was in bed and bath division inventories necessary to support seasonally higher sales during the balance of the year. Fieldcrest Cannon, Inc., manufactures and markets bed and bath products under the Fieldcrest, St. Marys, Cannon Royal Family, Cannon Monticello, and private brand labels. Carpet and rug division products include high quality woven and tufted carpets and rugs marketed under the Karastan and Bigelow brands. FIELDCREST CANNON, INC. Condensed Consolidated Statement of Income Quarter ended March 31 1992 1991 Net sales $271,352,000 $260,580,000 Income (loss) before income taxes 1,120,000 (4,951,000) Income taxes (benefit) 493,000 (1,437,000) Net income (loss) $ 627,000 $ (3,514,000) Average primary shares outstanding 10,462,469 10,407,735 Primary earnings (loss) per share $.06 $(.34) Fully diluted earns. (loss) per share $.06 $(.34) -0- 4/22/92 /CONTACT: K. W. Fraser Jr., senior vice president-finance of Fieldcrest Cannon, 919-665-4353/ (FLD) CO: Fieldcrest Cannon, Inc. ST: North Carolina IN: TEX SU: ERN
GK-SH -- NY066 -- 1363 04/22/92 14:20 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Apr 22, 1992|
|Previous Article:||'KEEP PENNSYLVANIA BEAUTIFUL DAY' LITTER CRUSADE TO BE HELD SATURDAY|
|Next Article:||SEPTA WILL ADD PLENTY OF SERVICE TO EARTH SUNDAY AND PARTICIPATE IN CLEAN AIR EVENTS|