Military boot maker McRae Industries Inc on Friday revealed it swung to a profit in fiscal 2002 on the back of record revenues, higher margins and improved cost control.

The North Carolina-based company posted net income of $2.5 million for the year to August 3 compared to a year-ago loss of $571,000. Net revenues surged 30 per cent to $74.5m from $57.1m in 2001.

It was boosted by a strong fourth quarter performance which saw net revenues jump to $20.7m from $14m and soaring demand for its Dan Post and Dingo branded western boot products.

McRae said in a statement: "The increase in net earnings for fiscal 2002 resulted primarily from the record net revenues, improved gross margins, especially in our western boots business, and contained selling, general and administrative expenses, which increased only 9.5 per cent from $13.9m in fiscal 2001 to $15.2m in fiscal 2002."