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Lakeland expects double digit growth from foreign operations
27 Oct '08
2 min read
Lakeland Industries Inc announced that, through its recently acquired Brazilian subsidiary Qualytextil, the Company has received a contract worth approximately US$700,000 from Neo Energy Group, a major holding company in Brazil owning several electric utilities, for customized protective clothing.
This award builds upon existing business with Lakeland and is representative of the high-caliber customers doing business with Qualytextil. Neo Energy will be using Lakeland garments for fire protection and electric arc exposure.
"We continue to experience robust business conditions at our high growth international operation," said Chris Ryan, the CEO of Lakeland. "Today's announcement marks the third major contract that we have received in the month of October from Brazil."
"Moreover, we believe that in the face of slower economic conditions in many developed nations around the world, the strategy we began implementing nearly two years ago to diversify our revenue base outside of the United States is gaining meaningful traction, particularly in Latin America, China and India where GDP growth will slow but will still be considered robust by U.S. standards. We expect continued strong unit growth from our international operations."
With an in-house sales force of 20 employees and nearly 30 outside sales representatives, Qualytextil covers the entire country of Brazil, selling directly to end users. Qualytextil markets products to major state-owned companies and agencies and the main oil and chemical companies.
The Brazilian operations, including manufacturing, sales and marketing, warehousing, and distribution, benefit from State provided tax incentives, favorable labor rates, and proximity to economical transportation for local and international distribution of garments. Lakeland expects its Brazilian sales and operating earnings to remain strong in their local currency for the Company's fiscal third quarter ended October 31, 2008. Exchange rate fluctuations, such as the recent strengthening of the U.S. dollar against the Brazilian Real, may impact the Company's consolidated financial results.
This award builds upon existing business with Lakeland and is representative of the high-caliber customers doing business with Qualytextil. Neo Energy will be using Lakeland garments for fire protection and electric arc exposure.
"We continue to experience robust business conditions at our high growth international operation," said Chris Ryan, the CEO of Lakeland. "Today's announcement marks the third major contract that we have received in the month of October from Brazil."
"Moreover, we believe that in the face of slower economic conditions in many developed nations around the world, the strategy we began implementing nearly two years ago to diversify our revenue base outside of the United States is gaining meaningful traction, particularly in Latin America, China and India where GDP growth will slow but will still be considered robust by U.S. standards. We expect continued strong unit growth from our international operations."
With an in-house sales force of 20 employees and nearly 30 outside sales representatives, Qualytextil covers the entire country of Brazil, selling directly to end users. Qualytextil markets products to major state-owned companies and agencies and the main oil and chemical companies.
The Brazilian operations, including manufacturing, sales and marketing, warehousing, and distribution, benefit from State provided tax incentives, favorable labor rates, and proximity to economical transportation for local and international distribution of garments. Lakeland expects its Brazilian sales and operating earnings to remain strong in their local currency for the Company's fiscal third quarter ended October 31, 2008. Exchange rate fluctuations, such as the recent strengthening of the U.S. dollar against the Brazilian Real, may impact the Company's consolidated financial results.
Lakeland Industries Inc
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