Premium-quality footwear designer Timberland reported first quarter net income of $29.2 million and diluted earnings per share (EPS) of $0.45, compared with first quarter 2005 net income of $42.2 million and diluted EPS of $0.61.
For the purpose of comparison, Timberland estimates that its 2005 diluted EPS would have been approximately $0.58 in the first quarter, including costs related to stock options and its employee stock purchase plan.
First quarter 2006 results included pre-tax costs of $0.5 million related to the final closure of the Company's Puerto Rico manufacturing facility and its establishment of a European finance shared service center. These restructuring costs had an immaterial impact on EPS.
Jeffrey B. Swartz, Timberland's President and Chief Executive Officer, stated, always taken a long-term view toward building the Timberland brand and business portfolio.
Despite near-term challenges, we are on the right track, with the right initiatives, to strengthen our business portfolio and capture the full potential we see for our brand and enterprise.
Will continue to deploy appropriate strategies in the U.S. while expanding our global reach. We will also continue to aggressively pursue the significant opportunities we see to achieve growth with premium casual consumers, to reassert Timberland's heritage strength in outdoor and industrial categories, and to develop new brand growth platforms globally."
Note that comments made by the Company and Mr. Swartz are Timberland's performance targets, based on current expectations. These comments are forward-looking, and actual results may differ materially.
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