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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): December 20, 1995
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FRUIT OF THE LOOM, INC.
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(Exact Name of Registrant as Specified in Charter)
DELAWARE 1-8941 36-3361804
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
5000 SEARS TOWER,
233 SOUTH WACKER DRIVE,
CHICAGO, ILLINOIS 60606
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(Address of Principal Executive Offices, including Zip Code)
Registrant's telephone number, including area code (312) 876-1724
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ITEM 5. OTHER EVENTS.
On December 20, 1995, the Registrant issued the news release attached as
Exhibit 99.1. The information contained in this news release is incorporated
herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 News Release of Registrant dated December 20, 1995.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FRUIT OF THE LOOM, INC.
Dated: January 3, 1996 By: /s/ LARRY K. SWITZER
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Larry K. Switzer
Executive Vice President
and Chief Financial Officer
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Exhibit Index
Sequentially
Exhibit # Item Numbered Pages
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99.1 News Release 5
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EXHIBIT 99.1
FRUIT OF THE LOOM, INC.
5000 Sears Tower
Chicago, Illinois 60606 . 312/876-1724
NEWS RELEASE
Contact: Mark A. Steinkrauss
Vice President, Corporate Relations
Fruit of the Loom, Inc.
Tel: 312/993-1889/Fax: 312/993-1749
FOR IMMEDIATE RELEASE
FRUIT OF THE LOOM, INC. COMMENTS ON
FOURTH QUARTER CHARGES TO OPERATIONS
Chicago, Illinois, December 20, 1995 - Fruit of the Loom, Inc. (NYSE-FTL), one
of the world's leading manufacturers of basic family apparel today reported
that it plans to take after tax charges to fourth quarter operations of
approximately $240-$260 million (earnings per share effect approximates
$3.15-$3.40). The writedown of all goodwill coupled with our Salem and Gitano
businesses approximates $135 million. Our previously announced plant closings
and reduction of personnel, and charges relating to foreign operations and
other corporate issues, approximate $115 million after tax. The net cash
outflow of these charges, including tax benefit, approximates $30 million over
1995 and 1996. The effect of these charges will result in a net loss for the
company for the fourth quarter and the year.
Commenting on the charges, William Farley, Chairman and Chief Executive officer
said, "In October we said that we would take some charges to operations in the
fourth quarter. After a thorough review of our entire organization we
identified a number of areas where we felt we could substantially reduce our
cost structure, streamline operations and improve customer service. In order
to effect these improvements we will take substantial after tax charges to
operations this quarter."
"We feel the company is well positioned to substantially improve its financial
results in 1996 and beyond. We look forward to improved operating
profitability, better asset utilization and sizeable positive cash flow now
that these charges are behind us and having completed numerous cost savings
efforts throughout the company. For example, annualized after tax cost savings
resulting from these charges approximate $40-$50 million", Mr. Farley said.
Mr. Farley also said, "We continue to invest in our business but with more
emphasis on marketing and advertising efforts. We will be spending more than
we have historically for management information systems to improve customer
service, even though our year-to-year spending on selling, general and
administrative expenses should be down. Also, we are anticipating reduced
working capital needs, as well as reduced levels of capital spending of
approximately $75 million."
Fruit of the Loom, Inc. is a vertically integrated, international basic apparel
company, emphasizing branded products for consumers ranging from infants to
senior citizens.
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