Russell Corporation said it expects to exceed analysts' expectations for the second quarter ending July 4, 2004.
“We anticipate reporting ongoing second quarter earnings in the range of 20 cents to 22 cents per share, exceeding the current consensus estimate of 15 cents per share,” said Jack Ward, chairman and CEO. “The acceleration of the cost savings from our Operational Improvement Program and improved manufacturing efficiencies from increased volume are contributing to the revised outlook for the second quarter.”
Russell also sold its interest in Marmot Mountain, Ltd., which will result in a one-time second quarter gain of 8.5 cents per share. Russell had held a minority investment position in Marmot since October 2001. Including the one- time gain from this sale, second quarter earnings are expected to be in the range of 28 cents to 30 cents per share. Profits from the Marmot sale will be reinvested into special one-time projects or activities this year that can positively impact the company.
Russell previously announced that it expected second quarter earnings to be in the range of 12 cents to 18 cents per share. For the 2004 fiscal year, Russell had provided earnings guidance to be in the range of $1.40 to $1.60 per share