WestPoint EBIDTA breaks even
Home Textiles Today Staff -- Home Textiles Today, 11/8/2012 3:19:47 PM
New York - Despite a year-over-year decline in sales, one profitability measurement hit break even during the third quarter, with EBIDTA (earnings before interest, depreciation, taxes and amortization) flat compared to a year-ago loss of $7 million.
Icahn Enterprises, WestPoint's parent company, credited the performance to improved margins as well as lower commodity costs.
Sales sank 32.9% to $53 million for the quarter ended Sept. 30.
"The decline in sales reflects the impact of the loss of largely unprofitable programs as the company focuses on products and customers that match its manufacturing and distribution strengths," the company reported.
The earnings release also noted WestPoint continued to build cash through Q3 "as it works down its working capital and sells discontinued plants." At the end of the quarter,
WestPoint had $73 million of unrestricted cash. At the end of 2011, it had $55 million.
Year-to-date, WestPoint's EDIBTA loss shrank to $2 million from $15 million in the first nine months of 2011. Sales tumbled 33.2% to $173 million.
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