15036 Tue, 08/12/2008 - 12:25pm
NEW YORK–WestPoint International, the home-fashions division of Icahn Enterprises, narrowed its operating loss by more than half in the second quarter, despite a steep drop in net sales.
The dark side in the second quarter was net sales, which fell 36.5 percent to $96 million.
According to an Icahn Enterprises filing with the U.S. Securities and Exchange Commission, the home-textiles manufacturer posted an operating loss of $24.1 million in the quarter, compared with a $51.5 million operating loss in the second quarter of last year. The company’s efforts in hacking away at expenses bore fruit in the quarter. WestPoint reduced its cost of goods sold by 42.5 percent to $89.2 million, and trimmed a further 12 percent off selling, general and administrative expenses, which totaled $23.9 million in the quarter.
In the SEC filing, Icahn Enterprises said WestPoint management will continue to slim down its cost of goods sold by restructuring its operations in its U.S. plants, increasing production at its non-U.S. facilities and joint ventures, and by sourcing goods from overseas vendors. During the second quarter, WestPoint entered into an agreement with a third party, unnamed in the SEC filing, to manage the majority of its U.S. warehousing and distribution operations. The company is consolidating these operations in its facility in Wagram, N.C.