Levi Strauss posts Q4 profit on flat sales, ends sales decline
14 Feb '06
3 min read
The net income for 2005 was $156 million compared to $30 million in the prior year. The increase in net income was due primarily to higher operating income and lower foreign exchange management contract losses, partially offset by costs related to refinancing bond debt and higher income tax expense.
Hans Ploos van Amstel, Chief Financial Officer, said, "We delivered another strong fiscal year with top-line stability and a robust improvement in bottom-line performance."
"In addition, we closed 14 open US tax years and successfully completed two bond offerings that extend the majority of our unsecured debt maturities to 2012 and beyond with more favorable borrowing terms," he said.
The fourth-quarter net sales of $1.16 billion were flat on a reported basis compared to the same period in 2004. Net sales in the quarter reflect primarily sales growth in the Asia Pacific region; the US Dockers, Levi's and Levi Strauss Signature brands; and Levi Strauss Mexico, partially offset by decreased sales in Europe.
Gross profit for the quarter improved $3 million to $510 million, or 44.1 percent of net sales, compared with $507 million, or 43.8 percent of net sales for the same period of 2004.
The net income for the fourth quarter was $44 million, versus a $19 million loss in the fourth quarter of 2004. The improvement was driven primarily by higher operating income, lower foreign exchange management contract losses and lower income taxexpense.
marketing@alchempro.com
