Advanced Search

Share Coverage



Category: Company News / Textiles / Retail / Mining Industry

Underwear supports Pacific Brands as mining leaves Bradken exposed

Tuesday, 16 Feb 2016 10:32:16 | Stephen Letts

Xiaofangting Antique Shop collects numerous old toys and antiques.

Underwear and home accessory business Pacific Brands has finally clawed has its way back into the black after years of restructuring and downsizing.

The maker of Bonds underwear and Sheridan sheets reported a first half profit of $24.3 million, a big turnaround from the $109 million loss for the same period last year.

Sales rose 8.6 per cent to $423.3 million as Pacific Brands continued to focus on developing its own stores and online presence while moving away from supplying big retail chains and supermarkets.

Underwear sales were a standout, up 6 per cent and well supported by growth in both the Jockey and Berlei brands.

Pacific Brands chief executive David Bortolussi said the strategy of simplifying the company and focussing on a higher quality business with a strong balance sheet was working.

Over the past few years, Pacific Brands has shed almost 2,000 jobs as it shifted its manufacturing base to Asia and offloaded more than 300 product lines, including the Dunlop and Slazenger sports brands and Grosby and Volley footwear labels.

Mr Bortolussi raised the company's full-year earnings guidance to between $73 and $75 million, well ahead of previous estimates of $66 million.

The company also resumed paying a dividend after a two-year pause, with a 1.6 cent per share interim payout.

At midday (AEDT) Pacific Bands shares had surged 8 per cent to 84 cents, a two-and-half-year-high.

Bradken slips deeper into the red despite restructuring

The news was not so good for mining services outfit Bradken.

The company posted a first-half loss of $168 million, a more than 80 per cent deterioration on the $93 million loss at the same time last year.

Sales fell 18 per cent to $404 million as demand dried up for Bradken's mining-related maintenance products.

Sales in the company's rail division were described as "negligible".

Acting managing director Phil Arnall said the past six months had been "trying".

"The company remains focussed on its strategic intent of generating surplus cash to pay down its debt," Mr Arnall said.

Bradken managed to cut its costs by 8 per cent after the closure of several of its foundries and plans to save another $8 million through further closures at higher cost operations.

So far Bradken has closed its operations at Launceston, Adelaide and Acacia Ridge in New South Wales and plans to sell its manufacturing assets in Europe and the UK.

Bradken's shares were hammered on the result and, at 12:30pm (AEDT), had fallen 7 per cent to 50 cents.

AustraliaPlus


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend