Gildan reported net earnings of U.S. $89.0 million or U.S. $0.73 per share on a diluted basis for its fourth fiscal quarter ended September 30, 2012, compared with net earnings of U.S. $48.5 million or U.S. $0.40 per share in the fourth quarter of fiscal 2011. Results for the fourth quarter of fiscal 2012 include restructuring and acquisition-related costs amounting to U.S. $5.9 million after-tax, primarily related to the write-down of real estate assets held for divestiture since the closure of U.S. sock manufacturing operations, as well as severance costs resulting from the integration of acquisitions.
Before the restructuring and acquisition-related costs, adjusted net earnings for the fourth quarter of fiscal 2012 were U.S. $94.9 million or U.S. $0.78 per share, up 82.5% and 81.4% respectively compared to U.S. $52.0 million or U.S. $0.43 per share in the fourth quarter of last year.
The Company had previously projected adjusted net earnings of close to U.S. $0.80 per share for the fourth quarter, when it reported its third quarter results on August 2, 2012. Adjusted net earnings for the fourth quarter include an after-tax charge of U.S. $0.02 per share related to a product labelling issue disclosed on October 16, 2012. This charge had not been anticipated in the Company's prior guidance for the fourth quarter.
The growth in the Company's net earnings in the fourth quarter compared to last year was due to the benefit of significantly lower cotton costs, higher Printwear unit sales volumes, more favourable product-mix and higher selling prices for Branded Apparel, and the initial accretion from the acquisition of Anvil Holdings Inc. (Anvil).
These positive factors were partially offset by lower net selling prices for Printwear, primarily reflecting the selling price reductions implemented in the first quarter of fiscal 2012, unfavourable Printwear product-mix, higher electricity, labour and other manufacturing input costs, the above-mentioned charge relating to the labelling issue, and higher income taxes due to the improved profitability of Branded Apparel.
Net sales in the fourth quarter amounted to U.S. $561.7 million, up 16.6% from U.S. $481.6 million in the fourth quarter of fiscal 2011, and in line with the Company's previous guidance of approximately U.S. $560 million. Sales for the Printwear segment amounted to U.S. $376.8 million, up 7.5% from U.S. $350.5 million in the fourth quarter of fiscal 2011, and sales for the Branded Apparel segment were U.S. $184.8 million, up 41% from U.S. $131.1 million from the fourth quarter of last year.
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