Fruit of the Loom connection

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Fruit of the Loom Loss Shrinks

CHICAGO (Reuters) - Fruit of the Loom Ltd. on
Friday reported its net loss narrowed in the second quarter
from a year ago as costs improved for the maker of underwear
and basic apparel, which is operating under bankruptcy
protection.

The Cayman Islands-based company posted a net loss of $36.2
million, or 54 cents a share, including reorganization costs,
compared with a net loss of $55.9 million, or 83 cents a share,
a year ago.

But Fruit of the Loom, known for the men's and boys'
underwear that bears its name, said operating earnings before
interest and other expenses -- excluding $34 million in
consolidation costs -- totaled $31.9 million in the second
quarter. That marked an improvement from the loss of $11.4
million in the same period a year ago.

Lower production costs and other expenses drove the growth
in operating earnings, offsetting volume and price reductions,
the company said.

Sales fell 22 percent to $347.7 million.

On March 15, Fruit of the Loom filed a reorganization plan
with the U.S. Bankruptcy Court in Delaware. The company, which
filed a voluntary petition for protection under Chapter 11 of
the federal bankruptcy code on Dec. 29, 1999, said it was not
possible at this time to predict the outcome of the bankruptcy
proceedings.

Fruit of the Loom also makes women's and girls' underwear,
as well as T-shirts, fleece tops, sweatpants and other
activewear and casual wear for men, women and children.

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Long-time chief executive William Farley departed that post in August because of the difficulties, some of which were blamed on Fruit's computer system.

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