Wellco Enterprises reports losses for third quarter
US boot manufacturer Wellco Enterprises registered a loss of $205,000 for the third quarter ending September 29, 2001, but has since picked up production of military footwear. The company said that the loss during the quarter was caused by a reduction in US Defence Department (DOD) spending prior to the September 11 attacks on the US where orders had been reduced for military boots.
Revenues for the period were listed at $3.57 million, resulting in a loss per share of 18 cents. This compares with an income of $451,000 or 39 cents per share based on revenues of $5.06 million for the same period last year.
Under its current boot contract with the DOD, Wellco receives orders and ships 25% of certain DOD boot needs (about 55,000 pairs) per fiscal quarter. As the contract neared its end, DOD funding was not enough to support the level of boot orders.
Since the September attacks, the DOD has increased its boot orders to 122,000 pairs with delivery dates extending until mid-February 2002. To meet this demand, Wellco has had to double its production.
