Losing streak is over for Dan River in 2Q
August 2, 2002,
Danville, VA — Launching an earnings turnaround after a long string of losses, Dan River Inc. parlayed sharply stronger margins, deep cuts in debt and interest expense and a profit recovery in the long-battered apparel fabrics business into a second-quarter profit of $3.7 million, bounding back from a year-before loss of $6.1 million.
Sales at the diversified textiles producer slipped by 4.9 percent, to $153.9 million from $161.9 million last year, as a steep decline in the core home fashions business was partially offset by strengthening sales in the long-troubled apparel fabrics business.
Despite the shortfall in sales, operating profits in the core home fashions business more than quadrupled, shooting up by 356.5 percent, to $12.2 million from $2.7 million last year. In a major turnaround, the long-hampered apparel fabrics business recorded a $1.3 million operating profit, reversing a prior-year loss of $1.8 million.