ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, January 31, 1996 TAG: 9601310047
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: JEFF STURGEON STAFF WRITER
MEMO: ***CORRECTION***
Published correction ran on February 1, 1996.
A story on Wednesday's Business page gave an incorrect profit figure
for Tultex Corp. The company would have reported 1995 profits of $8.6
million, or 25 cents per share, if it had not faced one-time charges
related to debt and administration.
ALTHOUGH THE COMPANY'S 1995 profits totaled only $1.8 million, its chief executive says it will bounce back.
Tultex Corp. of Martinsville has posted its lowest yearly profit in at least 20 years, but its chief executive said streamlining steps leave Tultex "well-positioned" to rebound in the period ahead.
"Our overall performance during 1995 compares favorably with the prior year in light of the challenges we faced," President and CEO Charles W. Davies Jr. said.
Tultex's 1995 profits totaled $1.8 million, compared with $8.9 million in 1994, a decrease of 80 percent.
Profit figures were skewed by huge one-time costs. In the January-March quarter last year, Tultex paid $4.9 million in special advertising costs and an unrelated $3.7 million pre-payment penalty to restructure its debt.
A $4.4 million gain on a factory sale was added to the 1994 profits. Putting aside special costs and the gain, the company had profits of $10.4 million last year, compared with $4.5 million in 1994, according to its financial statements.
The company had sales of $585 million for the year, compared with $565 million in 1994, and sales in the fourth quarter alone of $172 million, compared with $168 million during the same period in 1994.
Apparel-maker Tultex, Martinsville's largest employer, said rising cotton and polyester prices added to costs, while general consumer uneasiness about the economy last fall led to mixed sales of its goods overall.
In the October-December quarter, the company had a 10 percent increase from 1994 in sales of specialized apparel and hats bearing the names of colleges, universities and professional sports teams.
On the other hand, active-wear sales were unchanged from the same period a year earlier, except for December, in which active-wear sales were off nearly 12 percent. Sales of premium-grade blank active wear were up 17 percent.
Raw-material prices have likely peaked for now, which should leave the company on "a stable financial platform,'' Davies said.
The company operated the last nine months of 1995 under a newly signed union contract that covers 2,300 employees in Martinsville. Davies did not cite the union agreement as a factor in recent company performance.
LENGTH: Medium: 54 linesby CNB