Increased demand for US military combat boots, branded western and fashion footwear helped push McRae Industries Inc's third quarter revenues up 45 per cent to $18.47 million. This compares to consolidated net revenues of $12,78m reported for the third quarter of fiscal 2001.

Net earnings for the period were $678,000, or $.24 per share, compared to a net loss of $299,000, or $.11 per share last year.

Consolidated net revenues from continuing operations for the first nine months of fiscal 2002 totalled $53.75m against $43.14m for the first nine months of 2001. Consolidated net earnings in this period were $1.73m, or $.63 per share, as compared to a net loss of $175,000, or $.06 per share in the same period last year.
 
The company recently had its military boot contract with the US Government extended to 19 July 2002, adding an extra $6.3-13.1 million impact on first and second quarter revenues.

However, McRae Industries warns government proposals to replace its direct moulded sole contracts with a new waterproof membrane product - which is not compatible with the company's current manufacturing process - could impact its operating results if it does not secure the new business.