NEW YORK–WestPoint Home reported an operating loss of $23.9 million for the first quarter, down from the operating loss of $36.7 million it reported for the first quarter of 2007.
According to the 10-Q filing with the U.S. Securities and Exchange Commission from Icahn Enterprises, its parent company, WestPoint was able to slash its operating loss in spite of a 42.1 percent plummet in its first-quarter sales, which totaled $113.9 million. The manufacturer was able to make deep cuts in its expenses in the quarter. It slashed cost of goods sold by nearly 47 percent, to $104.9 million, and cut selling, general and administrative expenses by more than 18 percent, to $26.2 million.
The filing said WestPoint intends to continue to hack away at cost of goods sold by restructuring its plant operations in the United States, boosting production at non-U.S. facilities and joint-venture operations, and sourcing goods from lower-cost overseas facilities. In addition, WestPoint incurred restructuring charges of $6.6 million in the first quarter from plant closures, employee severances, benefits and other related costs. The company expects to continue to incur these restructuring costs through the rest of the year, totaling between $17 million and $20 million, according to the filing.