Delta Apparel Inc announced its plans to restructure its U.S. textile operations by closing its manufacturing facility in Fayette, Alabama. As a part of the Company’s overall restructuring of its textile manufacturing operations, the Company is also expensing its start-up and excess manufacturing costs associated with the integration of FunTees and the opening of its Honduran textile facility.
This reorganization is expected to occur in the Company’s fiscal first quarter of 2008, leaving the Company with two U.S. textile operations, one located in Maiden, North Carolina and the other in Fayetteville, North Carolina. Approximately 110 U.S. jobs will be eliminated by the manufacturing restructuring.
The Company expects to incur total costs of approximately $10.0 million, or $0.75 per diluted share, associated with the restructuring. The expenses will impact the Company’s fiscal fourth quarter of 2007 and the first two quarters of fiscal 2008.
The $0.51 per diluted share expense in fiscal year 2007 includes $0.40 per diluted share of start-up, excess and other cash costs associated with the integration of FunTees and the opening of its Honduran textile facility and includes $0.11 per diluted share for the non-cash impact of asset impairments related to the reduction of textile operations in the U.S.
The Company expects its restructuring initiatives will result in costs savings per diluted share of approximately $0.26 in fiscal 2008, $0.62 in fiscal 2009, and $0.80 in fiscal 2010.
This reorganization is expected to occur in the Company’s fiscal first quarter of 2008, leaving the Company with two U.S. textile operations, one located in Maiden, North Carolina and the other in Fayetteville, North Carolina. Approximately 110 U.S. jobs will be eliminated by the manufacturing restructuring.
The Company expects to incur total costs of approximately $10.0 million, or $0.75 per diluted share, associated with the restructuring. The expenses will impact the Company’s fiscal fourth quarter of 2007 and the first two quarters of fiscal 2008.
The $0.51 per diluted share expense in fiscal year 2007 includes $0.40 per diluted share of start-up, excess and other cash costs associated with the integration of FunTees and the opening of its Honduran textile facility and includes $0.11 per diluted share for the non-cash impact of asset impairments related to the reduction of textile operations in the U.S.
The Company expects its restructuring initiatives will result in costs savings per diluted share of approximately $0.26 in fiscal 2008, $0.62 in fiscal 2009, and $0.80 in fiscal 2010.
