For the fourth quarter ended Sept. 28, Burlington reported net income of $36.1 million, or 67 cents a diluted share, compared with a net loss of $76.7 million, or $1.46 a share, a year earlier. The income included $62.4 million in income tax benefits, as well as $21.1 million in pretax restructuring costs. Sales were $220.9 million, down 32.5 percent. The company’s apparel fabrics operation narrowed its deficit, recording a $2.9 million loss before taxes, compared with a $13.1 million loss in the prior-year quarter. Sales at that unit fell 34.7 percent to $107.6 million.
The company said it cut its apparel fabrics manufacturing capacity by half this year. It has moved its apparel headquarters to Hong Kong, where the Burlington Worldwide division now sells apparel fabrics manufactured at Burlington’s plants in the U.S., Mexico and India, as well as fabrics made under contract by independent mills throughout Asia. One source inside Burlington feels that its increasingly global scope was one of the elements that appealed to Buffett.
For the year, Burlington recorded a $100.8 million net loss, which came to $1.89 a diluted share, deeper than the $91.1 million, or $1.73 a share, deficit last year. The loss included $146.5 million in income tax benefits and $165.8 million in pretax restructuring charges. Sales slipped 29.2 percent to $993.3 million.