Knitting Elements ...DT Industries reports rise in income of 18.6 percent

DT Industries recently reported that income before a non-recurring charge related to the divestiture of its non-core Knitting Elements business increased 18.6 percent to $8.6 million, or 68 cents per share on a diluted basis, according to a release from the company.

Those numbers compare favorably with the $7.2 million or 61 cents per share, on fewer shares outstanding a year earlier.

After a $900,000 charge, net of tax, related to the sale of the Knitting Elements division, the company reported net income of $7.7 million, or 62 cents per diluted share.

Net sales for the quarter ended March 29 increased 28.3 percent to $132.6 million compared with $103.4 million for the prior-year quarter. Backlog was $239.4 million compared with a backlog of $180.2 million in the 1997 third quarter, the release stated.

For the nine months ended March 29, net income, before the Knitting Elements charge and "extraordinary losses related to debt refinancing in 1998 and 1997," was $23.3 million compared with $18.1 million a year earlier. After all charges, net income was $21.3 million, or $1.72 per diluted share, compared with $17.8 million, or $1.67 per diluted share, the prior year, the release said.

The company expects the fourth quarter to be about the same as the third, according to Stephen J. Gore, president and chief executive officer.

"We continue to implement a number of process improvements that we believe will continue to produce cost savings. Our project management systems, core business systems and strategic outsourcing programs are all designed to maximize efficiencies," Gore said in the release.

The company completed the sale of its non-core Knitting Elements division on May 1 for approximately $9.4 million. Proceeds of the sale were used to reduce outstanding debt.

The division, which manufactured precision wear parts for industrial knitting machines and was part of the components segment, had fiscal 1997 sales of approximately $9 million. DT Industries incurred a one-time operating charge of approximately $1.4 million related to the sale.

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