Jan 28, 2009
Hanesbrands Q4 profit beats Street; to cut 310 jobs
Jan 28, 2009
* Q4 adj EPS 50 cents beats Street by 13 cents
* Q4 revenue falls 11 pct to $1.04 bln
* To cut 310 jobs * Expects soft retail environment to continue
* Shares up 1 pct
Jan 28 (Reuters) - Underwear maker Hanesbrands Inc (HBI.N) posted a higher-than-expected fourth-quarter profit, helped by cost-reduction efforts and higher domestic product prices, and said it would cut 310 jobs.
Hanes spring-summer 2009
The company, which has about 45,000 employees, also said that it will close its Barnwell, South Carolina, sock-knitting plant by the end of April, and move production to El Salvador.
Hanesbrands, which also makes casual wear and active wear, has been shifting its manufacturing activity from the United States to Asia to reduce costs -- a move that has led to layoffs and closure of plants in North America over the past few months.
The company, whose brands include Bali, Champion, Playtex and Wonderbra, posted a net profit of 19 cents a share for the quarter ended Jan. 3. It had earned 52 cents a share a year earlier.
Hanesbrands, which competes with Jockey International Inc and Fruit of the Loom Inc, earned 50 cents a share, excluding items, in the latest fourth quarter. Revenue fell 11 pct to $1.04 billion.
Analysts on average were expecting earnings of 37 cents a share, excluding items, on revenue of $1.1 billion, according to Reuters Estimates.
Shares of the Winston-Salem, North Carolina-based company were trading up 10 cents at $9.88 after the bell. They closed up more than 5 percent at $9.78 Wednesday on the New York Stock Exchange.
For the alerts, double-click (Reporting by Mihir Dalal in Bangalore; Editing by Pratish Narayanan)
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