Quiksilver Swings To 2nd-quarter Profit

HUNTINGTON BEACH, Calif. (AP) — Quiksilver Inc., which makes outdoor clothing and equipment, on Monday reported a fiscal second-quarter profit, reversing a year-ago loss which included hefty costs related to now-discontinued operations.

However, weak outlook sent shares down 52 cents, or 14.4 percent, to $3.10 during aftermarket trading.

The company also said it negotiated a $150 million term loan and $200 million line of credit to improve its liquidity.

Profit for the quarter ended April 30 totaled $2.8 million, or 2 cents per share, compared with a loss last year of $206.2 million, or $1.59 per share, which included losses from discontinued operations of $244.9 million.

Excluding one-time items, including a $1.7 million severance charge, net income totaled 5 cents per share in the latest period. Revenue fell 17 percent to $494.2 million from $596.3 million last year.

Analysts polled by Thomson Reuters, on average, predicted a profit of 4 cents per share on slightly higher revenue of $502.1 million. Analyst estimates typically exclude one-time items.