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Fruit posts $56M 2Q loss
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August 18, 2000: 3:32 p.m. ET
Apparel firm, in Chapter 11, sells Gitano unit as part of restructuring
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NEW YORK (CNNfn) - Apparel maker Fruit of the Loom Ltd. Friday reported a second-quarter loss of $56 million, reflecting continued manufacturing and operating difficulties.
Nevertheless, the Chicago-based maker of Fruit of the Loom and BVD underwear remains optimistic, saying it has effected operational improvements to help it successfully emerge from Chapter 11 bankruptcy protection.
For the second-quarter, ended July 1, Fruit of the Loom, which was delisted by the New York Stock Exchange April 20, reported a loss from continuing operations of $55.9 million, or 83 cents a share, compared with earnings of $4.5 million, or 7 cents a share, in the year-ago quarter. Wall Street had not issued a consensus forecast for the company, according to earnings tracker First Call/Thomson Financial.
Sales fell to $446 million from $517.7 million.
The company attributed the loss mainly to $149.1 million in higher manufacturing costs incurred in the last six months of 1999, and does not expect any further impact from those costs in the second half of 2000.
Beset with operating and manufacturing difficulties, Fruit filed for Chapter 11 bankruptcy protection last December. Prior to the filing, the company manufactured nearly a third of all men's and boys' underwear and 15 percent of all women's and girls' underwear sold in the United States.
The company said then that one of its lenders agreed to provide $625 million in debtor-in-possession financing to help finance its day-to-day operations.
The company warned in filings with the Securities and Exchange Commission that its shareholders could end up with no equity under the bankruptcy plan.
Dennis Bookshester, the company's chief executive officer, said in Friday he sees more fruit on the vine in the near future. The company has been able to service its customers at a higher level by reducing costs and increasing volume per brand.
As part of its restructuring, Fruit of the Loom has sold its Gitano business and closed the Pro Player operations as well as other non-core products, which is expected to help boost production to meet anticipated future demand. 
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Fruit of the Loom
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