Kellwood's Q3 profit slashed in half
Kellwood Co., parent company of Sierra Designs and Kelty, said its third-quarter earnings plunged on restructuring charges the company took earlier than expected.
Earnings for the quarter fell to $8.1 million, or $0.31 per share, from $16.2 million, or $0.60 per share, during the same period last year. The results included a restructuring charge of $10.8 related to contractual obligations. The company said it had planned to record the charges "as they were paid in the future."
Earnings from continuing operations were also down— $5.5 million, or $0.21 per share, from $7.9 million, or $0.29 per share, a year earlier.
Revenue declined 1 percent to $516.4 million from $520 million during the same period a year ago.
Looking ahead, the company said it expects earnings from ongoing operations in the fiscal fourth-quarter of $0.43 per share, and net sales of $450 million. It expects fiscal-year earnings from ongoing operations of $1.63 per share, and net sales of $1.920 billion versus its earlier guidance of $1.890 billion.
Additionally, Kellwoods' board declared a regular quarterly dividend of $0.16 per common share, payable Dec. 22, 2006, to shareholders of record Dec. 11, 2006.
Timberland announces acquisition of Howies
Timberland (NYSE: TBL) said it acquired Howies Ltd., a British activewear brand, for an undisclosed amount.
Howies sells T-shirts, jeans and other casual clothing designed for the inspired action sports and outdoor customer. A statement from Timberland said Howies (www.howies.co.uk) was created to serve as a voice and mechanism for communicating a core environmental and social conscience, to ask a different question and show the world that there is another way to do business.
Howies will continue to be led by its local management team in Cardigan Bay, Wales, U.K.
Garmin acquires Dynastream Innovations
Garmin has acquired Dynastream Innovations for approximately $36 million in cash. Dynastream is a provider in the field of personal monitoring technology -- such as foot pods and heart rate monitors for sports and fitness products -- and ultra low power and low cost wireless connectivity solutions for a wide range of applications. These products address the needs of a broad spectrum of fitness consumers, from heath and wellness to performance athletes.
Located in Alberta, Canada, Dynastream will operate as an independent subsidiary of Garmin, retaining its name and managing its own product lines and customer relationships. The company will retain its management, R&D, and supporting staff and will continue to be located at its current Canadian headquarters. Dynastream employs approximately 50 people including over 25 engineers and scientists.
Dynastream has developed and currently manufactures innovative products such as its patented inertial based foot pod sensor. This device offers superior accuracy compared to pedometer-based solutions while at the same time offering long battery life. In addition, Dynastream manufactures heart rate sensors, which are used by Garmin and other customers. Both the foot pod and heart rate sensor utilize the ANT ultra low power wireless interface protocol invented by Dynastream. ANT was specifically designed to address the need for low-power wireless communications for fitness-based devices, but can be used on other applications, which demand a robust yet low power wireless interface.
Garmin (Nasdaq: GRMN) said the acquisition is expected to be neutral to its earnings in 2007.
Dick's expands distribution center
Dick's Sporting Goods (NYSE: DKS) said it has expanded its Midwest regional distribution center in Indiana, a facility acquired in its purchase of former rival Galyan's Trading Co.
The Plainfield, Ind., plant was expanded from 350,000 square feet to 725,000 square feet.
The expansion will allow Dick's Sporting Goods to service up to 230 stores from this location, compared to 100 stores before the expansion, and employ up to 700 associates at full capacity.
A formal ribbon-cutting ceremony will be held on Dec. 12. Dick's operates 294 stores in 34 states.
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