Protective clothing manufacturer Unifirst notes 7.7% drop in net income

Protective Clothing

Unifirst Corp., which manufactures, sells, and rents uniforms and protective clothing, has reported that its net income in the second fiscal quarter ended February 27, 2016 was US $ 23.5 million, down 7.7 per cent from US $ 25.4 million in the corresponding quarter last year.

In the period under review, revenue totalled US $ 363.1 million, up 0.5 per cent from US $ 361.5 million in the same period last year. Core laundry revenue in the quarter stood at US $ 331.4 million, down 0.2 per cent year on year, but adjusting for the effects of acquisitions and a weaker Canadian dollar, revenues grew 0.5 per cent, the company said in a release.

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Besides, revenue for the specialty garments segment, which consists of nuclear decontamination and cleanroom operations, was US $ 20.5 million, up 9.6 per cent year on year. Net cash provided by operating activities in the first six months of fiscal 2016 was US $ 105.5 million, down slightly from the same period last year.

Commenting on the results, Ronald Croatti, CEO of Unifirst Corp. said, “Our growth during the second quarter continued to be negatively impacted by the loss of uniform wearers and customers in energy dependent markets in the US and Canada. In fact, during the quarter, uniform wearer reductions accelerated from our first quarter experience.”

 

[SOURCE :-apparelresources]