May 7, 2008 / 9:04 PM / 10 years ago

UPDATE 1-Gildan profit rises with prices, sales

TORONTO, May 7 (Reuters) - Gildan Activewear Inc (GIL.TO) (GIL.N), reported a higher second-quarter profit on Wednesday, helped by stronger sales and selling prices for its clothing lines.

The company, which sells T-shirts, socks and underwear, said its net profit rose to $41.7 million, or 34 cents a diluted share, in the quarter ended March 30. That compares with a profit of $21.1 million, or 17 cents a share, in the same period last year.

Before restructuring charges, Gildan said adjusted net earnings for the second quarter were $42.5 million, or 35 cents a share, compared with adjusted net earnings of $37.5 million, or 31 cents a share, a year earlier.

Analysts had expected earnings before exceptions of 34 cents a share, on average, and revenue of $290 million, according to Reuters Estimates.

The Montreal-based company said sales rose 26.5 percent to $293.8 million.

Last week, Gildan cut its second-quarter adjusted profit forecast to 35 cents a share from 42 cents and its 2008 target to $1.45-$1.50 a share from $1.85-$1.90.

Alongside lower production from its Dominican Republic factory, the company was hurt by a writedown of discontinued products and integration problems at sock-maker Kentucky Derby Hosiery, which it acquired in 2006.

    $1=$1.01 Canadian Reporting by John McCrank; editing by Peter Galloway

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