Outsourcing boosted Pacific Brands profits
By Yvette Lane | August 25, 2010 8:09 PM EST
Clothing and footwear manufacturer Pacific Brands (PBG) made a net profit of $52.7 million for the 12 months to the end of June. The earnings lifted up the company from its loss of $235 million a year ago.
Pacific Brands' chief executive officer Sue Morphett said, “Our ability to maintain margins over the last 12 months through price and cost savings is a clear sign that our strategy delivered.”
The company cut more than 1,800 Australian jobs last year. The earnings this year could be attributed largely to offshore sourcing and better foreign exchange rates.
Morphett emphasized that “Reported sales will continue to be impacted by divestments and discontinuation, but in financial year 2011 an improvement (is expected) in underlying sales performance.”
The chief executive said revenue is up 11 percent in spite of the difficult retail environment. Pacific Brands shares were up nearly 15 per cent to $1.015 before noon.
“With transformation savings coming through, and an improved exchange rate, we are confident of improving earnings this year in a difficult market,” Morphett said.
Bonds, Hard Yakka, King Gee, Stubbies, Clarks, and Hush Puppies are manufactured under the Pacific Brands. All products are sold throughout the Asia-Pacific region, the United States, and Europe.
To contact the editor, e-mail:
Most Popular Slideshows
- Prince Harry & Camilla Thurlow Getting Serious, St. Tropez Holiday Before The Prince’s 30th Birthday [PHOTOS]
- Angelina Jolie & Brad Pitt Heads to Malta For New Movie After A Whirlwind French Wedding [PHOTOS]
- Prince William & Kate Middleton Caught Flirting In A Countryside Dinner Date [PHOTOS]
- Chris Martin Getting Serious With Jennifer Lawrence, Actress Joining Coldplay Tour [PHOTOS]
Join the Conversation
- Apple iPhone 6 Actual Release Date after September 9 Confirmed 128GB Variant with New Resolution
- Moto G2 Release Roundup: Specs, Pricing, and Release Date Details
- PlayStation 4 Killing Xbox One Costing Microsoft Millions But It's Fine
- Google Chrome 64-bit for Windows 8 and Window 7 with Mac Beta Available
- Apple iOS 8 vs Android 5.0 L: OS Wars Puts Android to Lower while Apple to Higher
- Nexus 6 on Release Date Confirmed with Phablet-Size Display as FCC Filing Hints of 5.9-Inch Screen
- Pricey iPhone 6 on Release Date Likely but with 3X Retina Resolution & Mobile Payment Service – Reports