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Russell Corp declares fully diluted earnings per share for Q3
19 Sep '05
3 min read
Vertically integrated apparel manufacturer Russell Corporation announced that it expects fully diluted earnings per share for the third quarter of 2005 to be between $0.50 and $0.60 and full year earnings in the $1.25 to $1.35 range on an ongoing basis, which is below the Company's previously issued earnings guidance. These projections do not include the direct negative impact of approximately $0.16 to $0.20 per share from Hurricane Katrina for fiscal 2005.
Today's announcement is the result of the combined effect of ongoing operational issues, the impact of Hurricane Katrina, and the delay of the full implementation of CAFTA. Despite the passage of the CAFTA legislation, it is currently required that duties continue to be paid resulting in additional unanticipated costs in the current quarter. It is anticipated that the legislation will be implemented by January 2006.
Disruptions to the southbound movement of components and the northbound movement of finished goods have impacted sales beyond the lost containers, as retail service requires the appropriate balance of colors, sizes, and tops and bottoms. The Company has not yet determined the full extent of lost or delayed revenue as a result of these mixes issues.
In an effort to minimize plant disruptions and production schedules while reducing customer service disruptions, the Company quickly changed procedures, utilizing other ports such as Miami. These changes resulted in substantially higher shipping costs. The Company has experienced substantial increases in transportation costs in addition to the increased distances now required.
Today's announcement is the result of the combined effect of ongoing operational issues, the impact of Hurricane Katrina, and the delay of the full implementation of CAFTA. Despite the passage of the CAFTA legislation, it is currently required that duties continue to be paid resulting in additional unanticipated costs in the current quarter. It is anticipated that the legislation will be implemented by January 2006.
Disruptions to the southbound movement of components and the northbound movement of finished goods have impacted sales beyond the lost containers, as retail service requires the appropriate balance of colors, sizes, and tops and bottoms. The Company has not yet determined the full extent of lost or delayed revenue as a result of these mixes issues.
In an effort to minimize plant disruptions and production schedules while reducing customer service disruptions, the Company quickly changed procedures, utilizing other ports such as Miami. These changes resulted in substantially higher shipping costs. The Company has experienced substantial increases in transportation costs in addition to the increased distances now required.
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