J. P. Stevens Reports Turnaround in Quarter

J. P. Stevens & Co., a major textile maker and marketer, posted a $13.4-million profit in its third quarter ended Aug. 2, compared to a $29.3-million loss incurred a year ago when it was restructuring its business.

Revenue for the quarter was $422.5 million, up slightly from $418.9 million in the same period last year.

In the year-ago quarter, costs of restructuring certain operations and divestments resulted in a charge against earnings totaling $44.5 million. However, it was offset partially by a one-time gain of $15.2 million.

In the latest quarter, Stevens sold its Delta Fabrics and Stevcoknit Fabrics divisions, the last of four division sales it initiated a year ago.

In addition, it withdrew from the shirting fabrics business in March of this year.

The company said the cost of those divestments had been absorbed and would have no impact on future earnings.

For the first nine months of its fiscal year, Stevens said it earned $33.2 million, compared to a loss of $22.2 million a year ago. Revenue rose to $1.25 billion from $1.23 billion.

Stevens said the consolidation of its domestics business acquired from Burlington Industries in February continued as planned but combining the two operations had been a “complex and costly undertaking which is adversely affecting the company’s current earnings and will continue to do so through the fourth quarter.”

The company commented that it expects that the new Multi-Fiber Arrangement with the 91-nation General Agreement on Tariffs and Trade will “certainly prove to be as ineffective as its predecessor in controlling the unreasonable growth in imports.”

At the same time, however, the company said it expected the government’s cotton price supports that went into effect on Aug. 1 to make cotton-containing exports more competitive on world markets.