Collins & Aikman Corporation has reported a loss of 35 cents per share in the second quarter of 2004, which included after-tax charges for restructuring and long-lived asset impairments of $26.0 million (or 31 cents per share).
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In the comparable 2003 quarter, the company had income of 13 cents per share, which included after-tax charges for restructuring and long-lived asset impairments of $4.4 million (or 5 cents per share).
The company also reported record second quarter 2004 net sales of $1.036 billion.
Chairman and CEO David Stockmansaid: “For the fourth consecutive quarter our EBITDA performance, excluding restructuring and impairment charges, was up significantly from the prior year on a comparable basis.
“The savings from the restructuring programme that began in the third quarter of 2003 is resulting in significant fixed cost savings as indicated by our year-over-year decline in selling, general and administrative expenses.”
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By GlobalDataThe second quarter 2004 pre-tax restructuring charge of $10.4 million included costs associated with additional actions to reduce its overhead structure, further reduce salaried headcount and streamline the senior management team on a worldwide basis. This restructuring initiative is expected to further reduce the company’s cost structure by approximately $11 million when fully implemented.
For the six months ended June 30, 2004, the company reported sales of $2.103 billion compared to $2.069 billion for the comparable period of 2003.
The company reported a net loss of $53.0 million or 63 cents per share, which included $35.6 million (or 43 cents per share) of after-tax charges for restructuring and long-lived asset impairments.
For the comparable 2003 period, the net loss was $15.5 million or 19 cents per share, which included after-tax charges for restructuring and long-lived asset impairments of $17.2 million (or 21 cents per share).
The company continues to estimate net sales for the full year 2004 will be approximately $4.0 billion.
EBITDA is expected to be at the lower end of the $355 million to $370 million range given in previous guidance. Guidance for 2004 net earnings is now between a loss of 20 cents and a loss of 30 cents per share.
