Following is a comparison of results for items comprising continuing operations:
Textile products. For the 2005 third quarter, the textile products business segment reported income of $2.6 million on revenue of $30.2 million, compared to income of $4.2 million on revenue of $31.3 million in 2004. For the nine months, income was $9.0 million on revenue of $101.9 million, compared to income of $13.7 million on revenue of $98.1 million in 2004. The declines were principally due to lower gross profit margins, as a result of changes in product mix and increased costs, particularly energy and chemicals.
Other. Other items, consisting principally of the gain on disposition of the Company's investment in Hallwood Energy III, equity income (loss) from investments in energy affiliates, interest income and expense and other income and expense, resulted in income of $43.7 million for the 2005 quarter and income of $44.3 million for the nine months, compared to income of $528,000 for the 2004 quarter and income of $1.7 million for the nine months, respectively.
Energy investment. In September 2005, the Company invested $9.2 million in a newly formed, private energy affiliate, Hallwood Energy 4, L.P., to acquire, explore and develop oil and gas acreage in the Fayetteville Shale of the Arkoma Basin in eastern Arkansas.
Income taxes (benefit). For the 2005 third quarter, income tax expense relating to continuing operations was $15.9 million, which included a current federal tax expense of $14.9 million, a non-cash, deferred federal tax expense of $678,000 and state tax expense of $377,000. For the 2004 quarter, income tax expense relating to continuing operations was $971,000, which included a current federal tax expense of $25,000 a non-cash, deferred federal tax expense of $413,000 and state tax expense of $533,000.