Boston, MA 05/06/2014 (wallstreetpr) – After a strong 2Q2014 performance, Gildan Activewear Inc (USA) (NYSE:GIL) plans to make more investments aimed at supporting revenue and profit growth. The company announced plans to expand its yarn-spinning production. As such, it expects to create more than 500 jobs domestically in North Carolina.
According to the company’s spokeswoman Stephanie Gaucher, construction works for the new facility are underway on an 113-acre site. The company, therefore, expects to invest $142 million in the new facility that will include development grants. The amount is expected to be enough for the purchase of a bigger land parcel and acquisition of more spinning equipment.
Production in the new facility is expected to start by mid-2015.
The company expects increased yarn production to increase its product production and sales, therefore, attracting bigger revenue. For example, the latest quarter gained support from strong sales even though weather condition was not favorable for the business.
Expansion is likely to remain high on the agenda of Gildan Activewear Inc (USA) (NYSE:GIL) now that the company is keen on expanding its market share across the segments.
2Q2014 in summary
Gildan Activewear Inc (USA) (NYSE:GIL) reported net income of $79.2 million, up 8.9 percent above the same quarter a year earlier. Sales in the latest quarter came in at $548.8 million, up 4.9 percent.
The strong 2Q performance was supported by a combination of sales increase and aggressive internal improvements that supported the bottom-line. The company continues to curb expenses even as it undertakes the expansion. The company observes that efficient operations are important to its long-term profitability.
3Q2014 guidance
Gildan Activewear Inc (USA) (NYSE:GIL) expects the current quarter to generate 14 percent sales improvement to $700 million. Earnings in the quarter are expected to be at $0.95 per share.
