WestPoint sales sag in June

By Staff -- Home Textiles Today, 9/11/2003 12:00:00 AM

West Point, GA — WestPoint Stevens, operating in bankruptcy since early in June, reported a loss for the month ended June 30 of $30.0 million, according to a filing with the federal Securities and Exchange Commission.

On an operating basis, the textiles giant actually recorded a modest operating profit of $3.4 million for the month. But tipping the balance sheet were $39.6 million in restructuring and goodwill impairment charges; $4.7 million in interest expense; Chapter 11 expenses of $6.5 million; and net miscellaneous expenses of $1.2 million.

Acting as a partial offset was an income-tax benefit of $16.8 million stemming from earlier losses.

Average gross margin for the month totaled 14.8 percent, weakening from the prior two months. For the entire second quarter, the company recorded a stronger 15.8 percent margin.

Now reporting results on a monthly basis while in bankruptcy, the major mill is expected to report July results later this month.