Troy, MI, August 2—Auto interior supplier Collins & Aikman Corp. reported a second-quarter loss Monday, but company officials said many of those problems won't occur in coming quarters.
In the quarter ended June 30, the Troy-based company reported a loss of $29.7 million, or 35 cents a share, on revenue of $1.036 billion. In the same period last year, it earned $10.7 million, or 13 cents a share, on revenue of $1.033 billion.
The second quarter included a pretax restructuring charge of $10.4 million, which involved cutting overhead costs, reducing the work force and streamlining the senior management globally. The company said those moves will reduce costs by $11 million when fully implemented.
Excluding items, the company reported a loss of 4 cents a share, matching the average estimate of analysts surveyed by Thomson First Call. Last year, the company reported income of 8 cents a share, excluding items.
"Restructuring has not become a way of life at Collins & Aikman," chief executive David Stockman said. "We had a defined program in place that will be finished by the end of the year.
In the six months ended June 30, the company reported a loss of $53 million, or 63 cents a share, on revenue of $2.1 billion. In the same period last year, it reported a loss of $15.5 million, or 19 cents a share, on revenue of $2.07 billion.
The company maintained its 2004 net sales estimate of $4 billion, but lowered its earnings projection to a range of a loss of 20 to 30 cents a share due to higher-than-expected foreign exchange losses, lower tax benefits and higher interest, depreciation and amortization expenses. The company had been expecting to break even or earn 10 cents a share.
