Home / Knowledge / News / Apparel/Garments / UniFirst Specialty Garments operating profit up
UniFirst Specialty Garments operating profit up
02
Jul '09
UniFirst Corporation announced results for the third quarter and first nine months of fiscal 2009, which ended on May 30, 2009.

Revenues for the third quarter of fiscal 2009 were $252.1 million, a 1.0% decrease from the previous year's $254.6 million. Third quarter net income was a record $21.7 million or $1.12 per diluted common share, a 28.0% increase from the third quarter of fiscal 2008, when net income was $16.9 million or $0.87 per diluted common share.

Revenues were approximately $772 million for both the first nine months of fiscal 2009 and fiscal 2008. However, on a comparable work week basis, revenues increased 2.6% during the first nine months of fiscal 2009 compared to the same period a year ago. Net income for the first nine months of fiscal 2009 was $58.8 million or $3.04 per diluted common share, a 20.8% increase from the first nine months of fiscal 2008, when net income was $48.7 million or $2.52 per diluted common share.

“Our top line continues to be impacted by the further decline of wearer levels at our customers as well as increased business closures,” said Ronald D. Croatti, UniFirst President and Chief Executive Officer. “Significantly lower energy prices as well as lower merchandise costs due to a lack of new employees being hired by our customers have helped drive recent profitability higher. In addition, our strong results reflect the proactive steps that we have taken to control our head count and overall cost structure in anticipation of further declines in our revenues.”

The Company's core laundry revenues declined $2.9 million or 1.3% during the third quarter compared to the same quarter in fiscal 2008; however, income from operations was up 19.2%. The core laundry's operating margin increased to 14.9% in the third quarter from 12.3% a year earlier as total expenses were down $8.3 million. The decline in expenses was primarily the result of lower energy, payroll and merchandise costs. Gasoline and natural gas costs were significantly below the prior year's levels.

Payroll costs are down as total headcount in the core laundry operations has been reduced by approximately 8% since the beginning of the calendar year. In addition, other administrative and production costs including travel expenses, are lower than those in last year's third quarter. The Company continues to focus on reducing its overall expenses. Partially offsetting these cost benefits were higher healthcare and other payroll related costs, depreciation, bad debt expense as well as an increase to our reserve for environmental contingencies.

UniFirst's Specialty Garments and First Aid segments also contributed to the Company's overall growth in third quarter profits compared to 2008. Specialty Garments operating profit increased to $3.0 million from $1.8 million a year ago. This growth was driven primarily by improved performances from the segment's US and Canadian power reactor business as well asits clean room operations.


Must ReadView All

Textiles | On 29th Jun 2017

Indian textile industry will reach new milestone by 2020

By 2020, textile technologies will be highly advanced not only with...

Alessandro Zucchi; Courtesy: ACIMIT

Textiles | On 29th Jun 2017

Alessandro Zucchi succeeds Carabelli as ACIMIT president

The members’ assembly of the Association of Italian Machinery...

Courtesy: Raymond

Apparel/Garments | On 28th Jun 2017

Raymond plans to invest Rs 1,400 crore in Amravati plant

Raymond, Indian textiles and apparel major, has decided to invest Rs...

Interviews View All

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search