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reported on March 11, 2009 that its Q4 FY08 net loss narrowed due to the absence of a $185.30 million goodwill impairment charge recorded in Q4 FY07. The net loss decreased to $4.35 million or $0.09 per share from a loss of $168.01 million or $3.69 per share. Adjusted net loss narrowed to $349,000 from $992,000. The consensus estimate was a profit of $0.05 per share.
Net sales dropped 9.0% to $149.45 million from $164.22 million, hurt by unfavorable currency exchange rates. Clothing sales decreased 11.2% to $95.90 million from $108.00 million, hurt by unfavorable currency rates and lower sales in North America and Europe, which were partially offset by increased Asia-Pacific sales. Roll Covers revenue slipped 4.8% to $53.50 million from $56.20 million due to unfavorable currency translations of $3.40 million, which were partially offset by rising Asia Pacific sales.
The cost of products sold dropped 8.4% to $90.70 million, resulting in the expansion of gross profit by 42 basis points to 39.31%. Selling expenses decreased 11.4% to $17.74 million while general and administrative expenses spiked 9.6% to $21.79 million. Restructuring and impairment expenses grew to $10.11 million from $1.58 million.
The company swung to a FY08 net profit of $26.60 million or $0.58 per share from a net loss of $150.21 million or $3.36 per share in FY07. Adjusted net income dropped 54.6% to $7.63 million from $16.80 million. Annual sales improved 3.7% to $638.14 million from $615.43 million.
XRM announced a plan to cease production at its Huyck Wangner clothing facility in Geelong, Australia by Q1 FY09.