Gildan Activewear updates EPS guidance for 2007 fiscal year
08 Dec '06
3 min read
Net earnings for fiscal 2006 amounted to U.S. $106.8 million and diluted EPS was U.S. $1.76, up respectively 24.2% and 23.1% from U.S. $86.0 million or U.S. $1.43 per share last year. Net earnings for fiscal 2006 included restructuring and other charges of U.S. $20.0 million after-tax or U.S. $0.33 per share.
Results for fiscal 2005 included restructuring and other charges of U.S. $7.9 million after-tax or U.S. $0.13 per share primarily for the closure and relocation of the Company's Canadian yarn-spinning operations.
During the fourth quarter of fiscal 2006, the Company generated cash flow of U.S $33.6 million from operating activities, after using U.S. $17.0 million to finance seasonal accounts receivable and U.S. $9.0 million to meet seasonal and replenishment inventory requirements for the sock business and to support transitional outsourcing programs.
The Company also used cash of U.S. $26.2 million for capital expenditures for its major capacity expansion projects in Honduras and the Dominican Republic and U.S. $19.9 million for the acquisition of Kentucky Derby Hosiery.
Gildan has increased its diluted EPS guidance for fiscal 2007 from U.S. $2.50 per share to approximately U.S. $2.55 per share, to take account of the projected U.S. $0.05 per share impact of the acquisition of Kentucky Derby Hosiery.
The Company's fiscal 2007 guidance continues to include approximately U.S. $0.06 per share of accelerated depreciation to reflect the change in the estimated economic life of the Company's remaining Canadian textile and related manufacturing assets. Prior to this additional depreciation charge, adjusted diluted EPS for fiscal 2007 is projected to be approximately U.S. $2.61.
marketing@alchempro.com
