Gildan Activewear Inc has lowered its earnings projections after production shortfalls at its Dominican Republic textile factory mean it will be unable to keep up with demand for its T-shirts.

The Toronto-based firm now expects to report second quarter earnings per share of $0.35 - down from earlier forecasts of $0.42.

For the full year, earnings per share are likely to be $1.45 to $1.50, falling below earlier guidance in January 2008 for $1.85 to $1.90 per share.

The revision is blamed on lower than projected activewear sales following a shortfall in production at its Dominican Republic textile facility.

It will also incur costs to write-down inventories of discontinued retail product-lines, and for the higher price of freight and energy.

Management, however, says it remains confident in the company's long-term growth, which will be helped by a price rise in the US screenprint channel.