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By
Reuters
Published
Oct 28, 2009
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Hanesbrands third quarter profit tops Street

By
Reuters
Published
Oct 28, 2009

Oct 28 (Reuters) - Hanesbrands Inc's (HBI.N) quarterly profit topped estimates as lower commodity costs and cost-reduction actions boosted margins.


Hanes spring-summer 2009

Hanesbrands has been shifting its manufacturing units from North America to Asia in a bid to cut costs, a move that has led to layoffs and closure of plants in North America in the recent past.

In the third quarter, the Winston-Salem, North Carolina-based company, whose brands include Wonderbra, Just My Size, Bali, Hanes and Playtex, earned $41.1 million, or 43 cents a share, compared with $15.9 million, or 17 cents a share, a year earlier.

Excluding items, the company earned 63 cents a share.

Revenue at the company, which was spun off from U.S. food maker Sara Lee Corp (SLE.N) in 2006, fell 8 percent to $1.06 billion.

Analysts on average were looking for a profit of 52 cents a share, before items, on revenue of $1.08 billion, according to Thomson Reuters I/B/E/S.

Shares of the company, which have rise more than four-fold in value since they touched a year-low in February, were up 69 cents at $22.50 in post-market trade. They closed at $21.81 Wednesday 28 October on the New York Stock Exchange. (Reporting by Vidya Lakshmi in Bangalore; Editing by Anne Pallivathuckal)

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