Plastic clog maker Crocs Inc is to close its manufacturing facility in Brazil as part of a number of new measures to cut costs and "right-size" its business after swinging to a third quarter loss of $148.0m.

The company will also halve its capital spending in 2009, and has lowered its sales and earnings outlook amid "the extremely challenging retail environments in the US and Europe."

The changes come as Crocs slumped to a net loss of $148.0m, or $1.79 per share, for the three months to 30 September, down from a profit of $56.5m, or $0.66 per share a year earlier.

The loss includes $104.1m in restructuring and other charges including the closure of the company's Canadian manufacturing and distribution operations.

The strength of the dollar also led to foreign currency exchange rate losses of $14.6m, Crocs said.

Revenues for the quarter fell 32% to $174.2m from $256.3m. Gross profit for the quarter was $2.4m, or 1.4% of revenues, compared to $155.4m, or 60.6% of revenues, a year earlier.

Selling, general and administrative expenses rose to $104.4m, or 59.9% of revenues, from $77.2m, or 30.1% of revenues, last time.

Ron Snyder, president and chief executive officer, said: "Our performance was below expectations."

He added: "Based on current trends we have lowered our projected sales volumes and made the strategic decision to further right-size our operations to better align with our lower volumes and revenues.

"In light of the weak economy, we are closely evaluating our 2009 capital expenditure plan and expect to reduce capital expenditures in 2009 by approximately 50% from 2008."

The company said it now expects to generate fourth quarter revenues of $100m to $120m and diluted loss per share of $0.50 to $0.65.

This compares to revenues of $224.8m and earnings of $0.45 per share in the fourth quarter of last year.

Mr Snyder continued: "Longer-term, we are enacting new strategies aimed at reinvigorating our top-line such as developing new and innovative product lines, and refining our merchandising and distribution strategy.

"We are confident that our brand equity remains strong and believe that our unique and proprietary material continues to provide us with compelling growth opportunities both domestically and overseas."