Pacific Brands posts loss, will cut 1850 jobsAAPFebruary 25,...

Pacific Brands posts loss, will cut 1850 jobs

AAP
February 25, 2009 09:19am

PACIFIC Brands will axe 1850 jobs from its manufacturing and administration operations after posting a first half loss due to difficult market conditions.
The company's net loss for the half year ended December 31 was $149.9 million, compared to a profit of $57 million in the previous corresponding period.

The company controls underwear brands Jockey, Bonds, Berlei and Rio, as well as clothing brands Mooks, Mossimo and Wrangler.

The board did not declare an interim dividend in order to preserve capital, and said a decision on the final dividend for fiscal 2009 will be made according to business conditions at the time.

Pacific Brands chief executive Sue Morphet described the first half result as "solid'' and in line with the company's guidance.

The current economic climate remains challenging and uncertain, with consumer confidence at low levels, she said.

"The potential for the continuation of deterioration in the market means we are not in a position to confidently predict the second half performance,'' she said.

Revenue for the first half fell 5.2 per cent to $1.04 billion, with earnings before interest, tax and amortisation (EBITA) up 0.3 per cent to $113 million.

Pacific Brands' (pbg.ASX:Quote,News) EBITA margin climbed 0.4 per cent to 10.8 per cent on a 0.8 per cent rise in its gross margin to 44.7 per cent.



http://www.news.com.au/business/story/0,27753,25104222-31037,00.html