Paxar Corporation posts slight loss on lower sales in Q4
16 Feb '06
3 min read
Global leader in providing innovative merchandising systems to retailers and apparel customers Paxar Corporation has reported sales of $206.8 million for the fourth quarter of 2005, compared with sales of $207.4 million for the fourth quarter of 2004.
A net loss of $0.8 million was reported for the fourth quarter of 2005, versus net income of $12.7 million for the fourth quarter of 2004.
Sales in the fourth quarter of 2005 were essentially unchanged from the fourth quarter of 2004. Organic sales were lower by 1 percent principally due to an unusually large bar code printer order in 2004 that did not recur in 2005.
For the year, Paxar reported sales of $809.1 million, net income of $23.0 million and earnings per share of $0.56. In 2004, sales were $804.4 million, net income was $47.4 million and earnings per share were $1.17.
The net income in 2005 included charges net of taxes related to restructuring, refinancing and cash repatriation of $21.0 million.
Rob van der Merwe, President and Chief Executive Officer, said, "Our fourth quarter performance was solidly within the earnings guidance range provided last quarter. However, we continued to experience the effects of migration, principally in our North American and European apparel businesses, which are the focus of our realignment initiatives. Additionally, sales in Europe were negatively impacted by foreign currency movements."
Rob van der Merwe added, "Despite 2005being a challenging year, Paxar made significant progress on a number of important fronts and is on track to become a stronger and more flexible global company. We witnessed accelerated migration of apparel production from North America, the UK and Western Europe to lower labor cost countries at a more rapid rate than in 2003 or 2004, and faster than expected following the lifting of textile and apparel quotas in January of 2005."
marketing@alchempro.com
