Hanesbrands profits up 200 percent

Apparel maker Hanesbrands Inc. reported an earnings increase of 200 percent, which the company attributed to cost-reduction measures in a tough retail climate.

Earnings for the first quarter of 2008 were $36 million, or 38 cents a share, up from first quarter profits of $12 million, or 12 cents a share, during the same period last year.

Excluding one-time costs, adjusted earnings were 42 cents per share, up from 27 cents per share a year earlier.

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The increase came even as first quarter net sales were down 5 percent from first quarter 2007, to $987.8 million.

"We are very pleased with our profit results in a tough economic climate. Our strong profit growth was driven by continued cost-reduction initiatives and management of our debt structure in spite of a sales decline," said CEO Richard A. Noll. "The key to our success is the continued execution of our business strategies of investing in our brands, driving cost reductions and globalizing our supply chain, and effectively investing our cash flow."

The company said in a statement that sales were down in the company's innerwear and outerwear segments, but the company said the declines are in line with broader economic slowdown. The company's international segment saw sales up 15 percent thanks to a favorable currency exchange rate, as well as growth.