Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Lakeland Announces Many Imp. Developments In Its Continued Global Transformation

Lakeland Industries, Inc. (LAKE: Quote) announced several important developments in its continued global transformation. The developments include consolidation of the company's domestic manufacturing operations and a significant traction for its Brazilian operations.

Christopher Ryan, Lakeland's president and chief executive officer, stated, "In advance of reporting financial results for our full fiscal year 2012 ending January 31, we are announcing important developments that beginning in our first quarter of fiscal 2013 are expected to deliver an improvement in the Company's cost structure, a reduction in overhead, and an acceleration of growth in Brazil that will drive a recovery in our consolidated revenues and profits sooner than we had previously announced. Certain of these and other developments will impact our fiscal 2012 fourth quarter financial results."

First and most important among Lakeland's recent developments is the receipt of a signed purchase order valued at around $5.3 million net of VAT taxes from the Brazilian Navy.

Further, in the fiscal 2012 fourth quarter, the company noted that it will be taking a foreign currency charge of about $200,000. From the beginning of the second half of 2011 and into the first quarter of 2013, Brazil's currency weakened against the US dollar. Lakeland said it has taken steps to reduce its exposure to foreign exchange fluctuations in Brazil.

Besides, the company said it will continue to market its expanding product lines in India, although to enhance its consolidated profitability it determined that its unprofitable India glove manufacturing subsidiary would be sold or shut down. To this end, the company reclassified the business as a discontinued operation with its third quarter financial results and recorded a pre-tax loss on disposal of approximately $880,000 for write-downs and other related expenses.

The company anticipates that additional charges relating to the discontinuance and shutdown of manufacturing operations in India will be limited to an additional $0.9 million for a total not to exceed $1.8 million. The additional charges are expected to be recorded with its fourth quarter results.

Register
To receive FREE breaking news email alerts for Lakeland Industries Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
The United Nations Security Council (UNSC) on Thursday declared the ongoing Ebola outbreak in West Africa "a threat to international peace and security." Notably, the declaration was made in the Council's first emergency meeting on a public health issue. The fifteen-member Council also unanimously... Oracle Corp. said Thursday after the markets closed that its first quarter profit fell slightly from last year, hurt mainly by higher income tax expenses even as revenue increased 3%. The company's quarterly earnings per share, excluding items, also came in below analysts' expectations as did its quarterly revenue. After ending the previous session mostly higher following the Federal Reserve's monetary policy announcement, stocks saw further upside during trading on Thursday. The gains on the day lifted the Dow and the S&P 500 to new record closing highs.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.