Superior Uniform Q1 profits down 45.4%

US: Superior Uniform Q1 profits down 45.4%

By Katie Smith | 20 April 2012

US apparel manufacturer Superior Uniform Group has posted a 45.4% drop in first-quarter profit as the company invested heavily in raw materials.

Net earnings for the quarter ended 31 March were dropped to $327,000. Earnings were $0.05 per diluted share compared to $0.10 per diluted share he prior year. Net sales increased 6% to $28.5m.

Michael Benstock, chief executive officer, said: "Gross margins for our uniform and related products business continued to be pressured in the first quarter of 2012, consistent with our expectation."

He added that as indicated in Superior Uniform's full-year earnings release, the company invested heavily in its raw material inventories during the cotton crisis.

"As a result, we were able to provide our products to our customers throughout the period of the shortages and were able to improve our market share in the process," Benstock said.

However, Superior Uniform's gross margins were negatively impacted. "We expect that they will continue to be pressured into the third quarter of 2012," Benstock added.

Sectors: Apparel, Finance, Manufacturing