Printer Friendly


 HICKORY, N.C., July 28 /PRNewswire/ -- Worldtex, Inc. (NYSE: WTX) the world's largest specialty manufacturer of covered elastic yarns, primarily used in the manufacture of hosiery and active apparel, announced today that earnings for the quarter ended June 30, 1993, increased by 28.0 percent, while revenues declined by 11.9 percent compared to the 1992 quarter.
 For the quarter ended June 30, sales declined to $41.2 million, compared with $46.7 million in the same period a year ago. Net income for the quarter was $2.0 million, or 14 cents per share, based on 14.7 million shares outstanding, up from $1.6 million, or 11 cents per share in the prior year, assuming the same number of shares outstanding.
 For the six months ended June 30, sales declined to $82.3 million, compared with $90.3 million in the prior year. Net Income for the six months was $3.7 million, or 26 cents per share, up from $3.2 million or 22 cents per share in the prior year.
 Commenting on the quarter's results, Richard Mackey, chairman and chief executive officer, explained that, "the company's North American business, which accounts for nearly 60 percent of revenues, continued to post increases in both sales and profits, reflecting the improved economies in the U.S. and Canada.
 However, Filix Lastex, S.A., the company's French subsidiary, continued to experience the effects of a sluggish European economy and, therefore, recorded sales and profit levels below those of the previous year's second quarter. Mackey stated that while the company's total operating profits were down in the quarter, substantially reduced interest costs enabled the company to show an increase in net income compared with the prior year.
 Mackey noted that late in June and in the early stages of the third quarter some improvement in sales of the European subsidiary were noted, but it is too early to tell whether these conditions will continue for the full quarter.
 Worldtex, Inc. was organized in July 1992 as a holding company for the covered elastic yarn manufacturing operations of Willcox & Gibbs, Inc. (NYSE: WG). Worldtex is comprised of three subsidiaries, Regal Manufacturing Company, Inc., based in Hickory, N.C.; Rubyco, Inc., based in Montreal, Canada; and Filix Lastex, S.A., headquartered in Troyes, France. The three subsidiaries have a total of approximately 1,200 employees.
 In the U.S. and Canada, Worldtex supplies primarily nylon covered spandex used in the manufacture of ladies' sheer and opaque pantyhose, support hose and control-top pantyhose. The company also manufactures covered elastic yarns using "microfiber" nylon, in addition to cotton covered spandex used to produce opaque pantyhose, and provides its customers with covered latex rubber and spandex yarns, used in the manufacture of men's, women's and children's socks.
 In Europe, Worldtex supplies customers with covered elastic yarns using nylon, cotton and microfibers to manufacture ladies' sheer and opaque pantyhose and men's, women's and children's socks. The company also provides apparel manufacturers with covered elastic yarns used to produce sweaters, athletic and activewear, swimwear and high fashion apparel.
 Six Months Ended Quarter Ended
 June 30 June 30
 1993 1992 1993 1992
 (000's Omitted) (000's Omitted)
 Net Sales $82,345 $90,261 $41,186 $46,736
 Net Income $3,739 $3,204 $1,999 $1,570
 Income per common and common
 equivalent share $.26 $.22 $.14 $.11
 Average number of common and
 common equivalent shares 14,663 14,720 14,663 14,720
 NOTE: Earnings per share for the 1992 quarter and six months have been calculated as if the average outstanding shares from Nov. 12, 1992, the date of spin-off from Willcox & Gibbs, to Dec. 31, 1992, were outstanding for the 1992 periods.
 -0- 7/28/93
 /CONTACT: Richard J. Mackey, Chairman of the Board, Worldtex, Inc., 704-328-5381/

CO: Worldtex, Inc. ST: North Carolina IN: TEX SU: ERN

CM-SB -- CH005 -- 6814 07/28/93 14:39 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 28, 1993

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters