Burlington Industries, Inc (NYSE: BUR) said today that it expects its earnings for the second half of the fiscal year (ending September) to be approximately 50% below analysts' current estimates, which average $0.46 per share for the June and September quarters combined. This is the result of weaker sales in the PerformanceWear segment and a slowdown in shipments of consumer products from the interior furnishings segment.

George W. Henderson III, chairman and chief executive officer, said: "The PerformanceWear segment started the June quarter with a strong order position, but as the quarter progressed, we experienced a slowdown in new orders, primarily in the womenswear lines. A significant component of the womenswear business had been exports to the European Union, but exports have been hurt by the recent weakness in the Euro. At the same time, some major retail customers are reducing their inventories of interior furnishings products, causing our shipments to fall well below the pace of consumer offtake.

"In spite of this slowdown, we continue to make progress toward improved profitability and we continue to be encouraged by the improved conditions in the denim market. We expect that the June and September quarters will be sequentially stronger than the preceding quarters and that profitability for the second half of the year will be better than the first half."

Burlington's third quarter will end July 1 and results will be announced July 25.

Burlington is one of the world's largest and most diversified providers of softgoods for apparel and interior furnishings. Its three business segments are: performanceWear, casualWear and interior furnishings.

This press release contains statements that are forward-looking statements within the meaning of applicable federal securities laws and are based upon the company's current expectations and assumptions, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, among other things, global economic activity, the success of the company's overall business strategy, the company's relationships with its principal customers and suppliers, the success of the company's expansion in other countries, the demand for textile products, the cost and availability of raw materials and labor, the company's ability to finance its capital expansion and modernization programs, the level of the company's indebtedness and the exposure to interest rate fluctuations, governmental legislation and regulatory changes, and the long-term implications of regional trade blocs and the effect of quota phase-out and lowering of tariffs under the WTO trade regime.