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DLA Honduran unit to raise output into next fiscal year
13 Jun '08
2 min read
Delta Apparel Inc confirmed its outlook for the fourth quarter and fiscal year ending June 28, 2008.
For the fourth quarter, the Company continues to expect sales to be in the range of $88 to $98 million and diluted earnings per share to be in the range of $0.40 to $0.46. For the full year, the Company continues to expect sales to be in the range of $305 to $315 million and diluted loss per share to be in the range of ($0.10) to ($0.16), inclusive of restructuring related expenses of ($0.39) per diluted share.
Robert W. Humphreys, President and Chief Executive Officer, commented “Despite the softening U.S. economy and ongoing challenges at retail, our business during the quarter has remained on plan. Over the past few months we have continued to expand our Junkfood business through our normal distribution channels as well as our partnership with GapKids and BabyGap.
At the same time, our new Honduran manufacturing facility recently achieved its weekly production goal of 500,000 lbs per week and will continue to increase output into the next fiscal year. While some market segments are being impacted by the current weakness at retail, our broad distribution channels are allowing us to meet our overall sales and profitability targets.”
The Company noted that the bankruptcy filing of a customer will result in an increase in accounts receivable reserves, impacting earnings by approximately $0.06 per diluted share in its fourth fiscal quarter.
The Company recognizes the potential of higher credit risk during current economic conditions and is closely monitoring its exposure. Despite these additional reserves, Delta Apparel, Inc. believes it will meet its previously announced earnings expectations for the fourth fiscal quarter.
For the fourth quarter, the Company continues to expect sales to be in the range of $88 to $98 million and diluted earnings per share to be in the range of $0.40 to $0.46. For the full year, the Company continues to expect sales to be in the range of $305 to $315 million and diluted loss per share to be in the range of ($0.10) to ($0.16), inclusive of restructuring related expenses of ($0.39) per diluted share.
Robert W. Humphreys, President and Chief Executive Officer, commented “Despite the softening U.S. economy and ongoing challenges at retail, our business during the quarter has remained on plan. Over the past few months we have continued to expand our Junkfood business through our normal distribution channels as well as our partnership with GapKids and BabyGap.
At the same time, our new Honduran manufacturing facility recently achieved its weekly production goal of 500,000 lbs per week and will continue to increase output into the next fiscal year. While some market segments are being impacted by the current weakness at retail, our broad distribution channels are allowing us to meet our overall sales and profitability targets.”
The Company noted that the bankruptcy filing of a customer will result in an increase in accounts receivable reserves, impacting earnings by approximately $0.06 per diluted share in its fourth fiscal quarter.
The Company recognizes the potential of higher credit risk during current economic conditions and is closely monitoring its exposure. Despite these additional reserves, Delta Apparel, Inc. believes it will meet its previously announced earnings expectations for the fourth fiscal quarter.
Delta Apparel Inc
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