Pacific Brands Ltd. reported a profit of Australia $22.2 million (U.S. $20 million) in the six months ended
December 31 versus a loss of A$150 million a year earlier. Sales fell 7.8% to
A$960.8 million ($853.7 million).
A year after posting a record loss from taking A$210 million ($186.6 million) in charges to close plants and fire workers, the company lowered its cost of doing business by 10 percent, and forecasts more savings in the second half. Chief Executive Officer Sue Morphet scrapped most of the company’s own manufacturing to focus on sales and marketing of brands such Bonds underwear.
“We are beginning to realize the positive impacts of the strategy on the way we do business,” Morphet said in the statement. “For the first time in many years we have a cost- efficient platform on which we will continue to build the future of the company.”
