FOR IMMEDIATE RELEASE
|
Contact: | Cindy Knoebel | ||
VP, Financial & Corporate | ||||
Communications | ||||
VF Services, Inc. | ||||
(336) 424-6189/(212) 841-7141 | ||||
Paul Mason | ||||
Director, Corporate | ||||
Communications | ||||
VF Corporation | ||||
(336) 424-6192 |
| Move Enhances VFs Business Mix, Growth and Margins | ||
| Proceeds to be Used to Repurchase Shares | ||
| Expects Record Fourth Quarter for 2006 | ||
| 2007 Initial Guidance Provided |
| Business Mix: An increase in the contribution to total revenues from VFs growing lifestyle businesses Outdoor and Sportswear to 40%, with the Companys strong heritage businesses Jeanswear and Imagewear accounting for 60%. In 2005, lifestyle businesses accounted for 30% of total revenues. |
| Revenue Growth Targets: We are targeting 8% annual revenue growth including acquisitions, and expect strong organic growth of 5% annually. Acquisitions will continue to be an important component of our growth plan. |
| Operating Margin Goal: Operating margins should approach our goal of 14% in 2007, up from 12.7% reported in both 2005 and 2004. |
| Total revenues of approximately $6.22 billion, an increase of 10% over revenues of $5.65 billion in 2005. | ||
| Earnings of approximately $4.70 to $4.72 per share, up approximately 11% from $4.23 per share in the prior year. |
| Total revenues of approximately $1.60 billion, an increase of 9% over revenues of $1.46 billion in 2005. | ||
| Earnings of approximately $1.20 to $1.22 per share, up about 9% from $1.11 per share in the prior years quarter. |
2
3
2006 | ||||||||||||||||
First | Second | Third | Nine | |||||||||||||
Quarter | Quarter | Quarter | Months | |||||||||||||
Net Sales |
$ | 1,436,706 | $ | 1,332,892 | $ | 1,791,648 | $ | 4,561,246 | ||||||||
Royalty Income |
18,916 | 18,421 | 18,450 | 55,787 | ||||||||||||
Total Revenues |
1,455,622 | 1,351,313 | 1,810,098 | 4,617,033 | ||||||||||||
Costs and Operating
Expenses |
||||||||||||||||
Cost of goods sold |
824,600 | 765,554 | 1,018,021 | 2,608,175 | ||||||||||||
Marketing,
administrative and
general expenses |
443,709 | 439,970 | 504,253 | 1,387,932 | ||||||||||||
1,268,309 | 1,205,524 | 1,522,274 | 3,996,107 | |||||||||||||
Operating Income |
187,313 | 145,789 | 287,824 | 620,926 | ||||||||||||
Other Income (Expense) |
||||||||||||||||
Interest income |
1,418 | 1,292 | 1,439 | 4,149 | ||||||||||||
Interest expense |
(12,679 | ) | (13,856 | ) | (15,835 | ) | (42,370 | ) | ||||||||
Miscellaneous, net |
829 | 542 | 1,869 | 3,240 | ||||||||||||
(10,432 | ) | (12,022 | ) | (12,527 | ) | (34,981 | ) | |||||||||
Income from Continuing
Operations |
||||||||||||||||
Before Income Taxes |
176,881 | 133,767 | 275,297 | 585,945 | ||||||||||||
Income Taxes |
58,739 | 44,208 | 89,340 | 192,287 | ||||||||||||
Income from Continuing
Operations |
118,142 | 89,559 | 185,957 | 393,658 | ||||||||||||
Discontinued
Operations |
10,043 | 9,473 | 11,750 | 31,266 | ||||||||||||
Net Income |
$ | 128,185 | $ | 99,032 | $ | 197,707 | $ | 424,924 | ||||||||
Earnings Per Common |
4
2006 | ||||||||||||||||
First | Second | Third | Nine | |||||||||||||
Quarter | Quarter | Quarter | Months | |||||||||||||
Share Basic |
||||||||||||||||
Income from
continuing
operations |
$ | 1.07 | $ | 0.81 | $ | 1.68 | $ | 3.57 | ||||||||
Discontinued
operations |
0.09 | 0.09 | 0.11 | 0.28 | ||||||||||||
Net income |
1.16 | 0.90 | 1.78 | 3.85 | ||||||||||||
Earnings Per Common
Share Diluted |
||||||||||||||||
Income from
continuing
operations |
$ | 1.05 | $ | 0.80 | $ | 1.64 | $ | 3.49 | ||||||||
Discontinued
operations |
0.09 | 0.08 | 0.10 | 0.28 | ||||||||||||
Net income |
1.14 | 0.88 | 1.75 | 3.77 |
Year Ended December | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Net Sales |
$ | 5,582,075 | $ | 5,150,985 | $ | 4,377,233 | ||||||
Royalty Income |
72,080 | 67,081 | 36,121 | |||||||||
Total Revenues |
5,654,155 | 5,218,066 | 4,413,354 | |||||||||
Costs and Operating Expenses |
||||||||||||
Cost of goods sold |
3,209,312 | 3,067,678 | 2,728,164 | |||||||||
Marketing, administrative and
general expenses |
1,676,892 | 1,486,031 | 1,132,667 | |||||||||
4,886,204 | 4,553,709 | 3,860,831 | ||||||||||
Operating Income |
767,951 | 664,357 | 552,523 | |||||||||
Other Income (Expense) |
||||||||||||
Interest income |
8,217 | 7,151 | 11,456 | |||||||||
Interest expense |
(70,596 | ) | (76,021 | ) | (61,167 | ) | ||||||
Miscellaneous, net |
6,121 | 182 | 9,917 | |||||||||
(56,258 | ) | (68,688 | ) | (39,794 | ) | |||||||
Income from Continuing Operations
Before Income Taxes |
711,693 | 595,669 | 512,729 | |||||||||
Income Taxes |
229,064 | 196,790 | 169,468 | |||||||||
5
Year Ended December | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Income from Continuing Operations |
482,629 | 398,879 | 343,261 | |||||||||
Discontinued Operations |
35,906 | 75,823 | 54,672 | |||||||||
Cumulative Effect of a Change in
Accounting Policy |
(11,833 | ) | | | ||||||||
Net Income |
$ | 506,702 | $ | 474,702 | $ | 397,933 | ||||||
Earnings Per Common Share Basic |
||||||||||||
Income from continuing operations |
$ | 4.33 | $ | 3.61 | $ | 3.17 | ||||||
Discontinued operations |
0.32 | 0.69 | 0.51 | |||||||||
Cumulative effect of a change in
accounting policy |
(0.11 | ) | | | ||||||||
Net income |
4.54 | 4.30 | 3.67 | |||||||||
Earnings Per Common Share Diluted |
||||||||||||
Income from continuing operations |
$ | 4.23 | $ | 3.54 | $ | 3.11 | ||||||
Discontinued operations |
0.31 | 0.67 | 0.50 | |||||||||
Cumulative effect of a change in
accounting policy |
(0.10 | ) | | | ||||||||
Net income |
4.44 | 4.21 | 3.61 |
2005 | ||||||||||||||||||||
First | Second | Third | Fourth | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||
Net Sales |
$ | 1,336,366 | $ | 1,212,817 | $ | 1,589,782 | $ | 1,443,110 | $ | 5,582,075 | ||||||||||
Royalty Income |
18,116 | 16,099 | 18,536 | 19,329 | 72,080 | |||||||||||||||
Total Revenues |
1,354,482 | 1,228,916 | 1,608,318 | 1,462,439 | 5,654,155 | |||||||||||||||
Costs and
Operating
Expenses |
||||||||||||||||||||
Cost of goods
sold |
766,214 | 688,354 | 912,837 | 841,907 | 3,209,312 | |||||||||||||||
Marketing,
administrative and
general
expenses |
423,740 | 400,417 | 429,432 | 423,303 | 1,676,892 | |||||||||||||||
1,189,954 | 1,088,771 | 1,342,269 | 1,265,210 | 4,886,204 | ||||||||||||||||
Operating |
6
2005 | ||||||||||||||||||||
First | Second | Third | Fourth | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||
Income |
164,528 | 140,145 | 266,049 | 197,229 | 767,951 | |||||||||||||||
Other Income
(Expense) |
||||||||||||||||||||
Interest
income |
3,016 | 2,041 | 1,402 | 1,758 | 8,217 | |||||||||||||||
Interest
expense |
(18,666 | ) | (18,479 | ) | (19,343 | ) | (14,108 | ) | (70,596 | ) | ||||||||||
Miscellaneous,
net |
(336 | ) | 605 | 1,849 | 4,003 | 6,121 | ||||||||||||||
(15,986 | ) | (15,833 | ) | (16,092 | ) | (8,347 | ) | (56,258 | ) | |||||||||||
Income from
Continuing
Operations |
||||||||||||||||||||
Before Income
taxes |
148,542 | 124,312 | 249,957 | 188,882 | 711,693 | |||||||||||||||
Income Taxes |
47,476 | 35,389 | 83,026 | 63,173 | 229,064 | |||||||||||||||
Income from
Continuing
Operations |
101,066 | 88,923 | 166,931 | 125,709 | 482,629 | |||||||||||||||
Discontinued
Operations |
13,620 | 7,826 | 12,699 | 1,761 | 35,906 | |||||||||||||||
Cumulative
Effect of a
Change in
Accounting
Policy |
(11,833 | ) | | | | (11,833 | ) | |||||||||||||
Net Income |
$ | 102,853 | $ | 96,749 | $ | 179,630 | $ | 127,470 | $ | 506,702 | ||||||||||
Earnings Per
Common Share Basic |
||||||||||||||||||||
Income from
continuing
operations |
$ | 0.90 | $ | 0.80 | $ | 1.50 | $ | 1.14 | $ | 4.33 | ||||||||||
Discontinued
operations |
0.12 | 0.07 | 0.11 | 0.02 | 0.32 | |||||||||||||||
Cumulative
effect of a
change in
accounting
policy |
(0.11 | ) | | | | (0.11 | ) | |||||||||||||
Net income |
0.92 | 0.87 | 1.61 | 1.15 | 4.54 |
7
2005 | ||||||||||||||||||||
First | Second | Third | Fourth | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||
Earnings Per
Common Share
Diluted |
||||||||||||||||||||
Income from
continuing
operations |
$ | 0.88 | $ | 0.78 | $ | 1.46 | $ | 1.11 | $ | 4.23 | ||||||||||
Discontinued
operations |
0.12 | 0.07 | 0.11 | 0.02 | 0.31 | |||||||||||||||
Cumulative
effect of a
change in
accounting
policy |
(0.10 | ) | | | | (0.10 | ) | |||||||||||||
Net income |
0.89 | 0.85 | 1.57 | 1.13 | 4.44 |
8