Gildan Activewear Inc. (TSX:GIL)(NYSE:GIL) announced today that it
is evaluating potential sites in the Southern U.S. for the
construction of two additional yarn-spinning facilities, to support
its projected sales growth and further reinforce its position as a
global low-cost manufacturer. The facilities will be built with the
most modern product technology, which will continue to
differentiate the product quality of Gildan® branded products.
The Company currently expects to invest in excess of U.S. $200
million during fiscal 2014 and 2015 for the construction and ramp
up of these new facilities. This investment will be made in
addition to the investments announced on November 29, 2012 for a
new ring-spun yarn manufacturing facility in Salisbury, N.C., and
the refurbishment and modernization of the Company's open-end
facilities in Clarkton, N.C. and Cedartown, GA.
The Company's total investment in U.S. yarn-spinning facilities,
including the two new facilities, is expected to create over 700
jobs and further solidify the important domestic U.S. component of
its vertically-integrated manufacturing.
The Company will be in a position to provide further details of
its capital investment program for fiscal 2014, including its plans
for further expansion of its vertical textile manufacturing
operations, when it releases its results for the fourth quarter of
fiscal 2013.
About Gildan
Gildan is a leading supplier of quality branded basic family
apparel, including T-shirts, fleece, sport shirts, socks and
underwear. The Company sells its products under a diversified
portfolio of Company-owned brands, including the Gildan®, Gold Toe®
and Anvil® brands and brand extensions, as well as under license
agreements for the Under Armour® and New Balance® brands. The
Company distributes its products in printwear markets in the U.S.
and Canada, where Gildan® is the industry-leading brand, and the
Company is increasing its penetration in international printwear
markets. The Company is also one of the largest suppliers of
branded athletic, casual and dress socks for a broad spectrum of
retailers in the U.S. In addition to socks, the Company is
developing Gildan® as a consumer brand for underwear and
activewear.
Gildan owns and operates vertically-integrated, large-scale
manufacturing facilities which are primarily located in Central
America and the Caribbean Basin to efficiently service the
replenishment needs of its customers in the printwear and retail
markets. Gildan has over 33,000 employees worldwide and is
committed to industry-leading labour and environmental practices in
all of its facilities. More information about the Company and its
corporate citizenship practices and initiatives can be found at its
corporate websites www.gildan.com and www.genuinegildan.com,
respectively.
Forward-Looking Statements
Certain statements included in this press release constitute
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 and Canadian securities
legislation and regulations, and are subject to important risks,
uncertainties and assumptions. This forward-looking information
includes, amongst others, information with respect to our
objectives and the strategies to achieve these objectives, as well
as information with respect to our beliefs, plans, expectations,
anticipations, estimates and intentions, including, without
limitation, our expectation with regards to sales growth, capital
expenditures, manufacturing efficiencies and cost savings.
Forward-looking statements generally can be identified by the use
of conditional or forward-looking terminology such as "may",
"will", "expect", "intend", "estimate", "project", "assume",
"anticipate", "plan", "foresee", "believe" or "continue" or the
negatives of these terms or variations of them or similar
terminology. We refer you to the Company's filings with the
Canadian securities regulatory authorities and the U.S. Securities
and Exchange Commission, as well as the risks described under the
"Financial risk management", "Critical accounting estimates and
judgments" and "Risks and uncertainties" sections of the 2012
Annual MD&A for a discussion of the various factors that may
affect the Company's future results. Material factors and
assumptions that were applied in drawing a conclusion or making a
forecast or projection are also set out throughout this
document.
Forward-looking information is inherently uncertain and the
results or events predicted in such forward-looking information may
differ materially from actual results or events. Material factors,
which could cause actual results or events to differ materially
from a conclusion, forecast or projection in such forward-looking
information, include, but are not limited to:
-- our ability to implement our growth strategies and plans, including
achieving market share gains, obtaining and successfully introducing new
sales programs, implementing cost reduction initiatives and completing
and successfully integrating acquisitions;
-- the intensity of competitive activity and our ability to compete
effectively;
-- adverse changes in general economic and financial conditions globally or
in one or more of the markets we serve;
-- our reliance on a small number of significant customers;
-- the fact that our customers do not commit contractually to minimum
quantity purchases;
-- our ability to anticipate changes in consumer preferences and trends;
-- our ability to manage production and inventory levels effectively in
relation to changes in customer demand;
-- fluctuations and volatility in the price of raw materials used to
manufacture our products, such as cotton and polyester fibres;
-- our dependence on a small number of key suppliers and our ability to
maintain an uninterrupted supply of raw materials and finished goods;
-- the impact of climate, political, social and economic risks in the
countries in which we operate or from which we source production;
-- disruption to manufacturing and distribution activities due to such
factors as operational issues, disruptions in transportation logistic
functions, labour disruptions, political or social instability, bad
weather, natural disasters, pandemics and other unforeseen adverse
events;
-- changes to international trade legislation that the Company is currently
relying on in conducting its manufacturing operations or the application
of safeguards thereunder;
-- factors or circumstances that could increase our effective income tax
rate, including the outcome of any tax audits or changes to applicable
tax laws or treaties;
-- compliance with applicable environmental, tax, trade, employment, health
and safety, anti-corruption, privacy and other laws and regulations in
the jurisdictions in which we operate;
-- our significant reliance on computerized information systems for our
business operations, including our JD Edwards Enterprise Resource
Planning (ERP) system which is currently being upgraded to the latest
system release, Enterprise One;
-- changes in our relationship with our employees or changes to domestic
and foreign employment laws and regulations;
-- negative publicity as a result of violation of local labour laws or
international labour standards, or unethical labour or other business
practices by the Company or one of its third-party contractors;
-- our dependence on key management and our ability to attract and/or
retain key personnel;
-- changes to and failure to comply with consumer product safety laws and
regulations;
-- adverse changes in third party licensing arrangements and licensed
brands;
-- our ability to protect our intellectual property rights;
-- changes in accounting policies and estimates;
-- exposure to risks arising from financial instruments, including credit
risk, liquidity risk, foreign currency risk and interest rate risk, as
well as risks arising from commodity prices; and
-- the adverse impact of any current or future legal and regulatory
actions.
These factors may cause the Company's actual performance and
financial results in future periods to differ materially from any
estimates or projections of future performance or results expressed
or implied by such forward-looking statements. Forward-looking
statements do not take into account the effect that transactions or
non-recurring or other special items announced or occurring after
the statements are made, may have on the Company's business. For
example, they do not include the effect of business dispositions,
acquisitions, other business transactions, asset write-downs, asset
impairment losses or other charges announced or occurring after
forward-looking statements are made. The financial impact of such
transactions and non-recurring and other special items can be
complex and necessarily depends on the facts particular to each of
them.
There can be no assurance that the expectations represented by
our forward-looking statements will prove to be correct. The
purpose of the forward-looking statements is to provide the reader
with a description of management's expectations regarding the
Company's future financial performance and may not be appropriate
for other purposes. Furthermore, unless otherwise stated, the
forward-looking statements contained in this press release are made
as of the date of this press release, and we do not undertake any
obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise unless required by applicable
legislation or regulation. The forward-looking statements contained
in this press release are expressly qualified by this cautionary
statement.
Contacts: Investor Relations Laurence G. Sellyn, Executive
Vice-President, Chief Financial and Administrative Officer (514)
343-8805lsellyn@gildan.com Sophie Argiriou, Vice-President,
Investor Communications (514) 343-8815sargiriou@gildan.com Media
Relations Stephanie Gaucher, Manager, Corporate Communications
(514) 343-8811sgaucher@gildan.com
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