Gildan products.
Gildan Activewear Inc. says it has increased its capital spending budget in response to the improved market conditions for its clothing.
The Montreal-headquartered company says it now estimates full-year sales for fiscal 2010 will be $1.3-billion (U.S.) - up 25 per cent from 2009 and $100-million above the previous estimate.
The T-shirt, sock and clothing maker says it has increased its 2010 capital budget to $155-million, up $10-million from the previous estimate.
Among Gildan's plans is a $20-million expansion at a distribution centre in North Carolina, to begin this year and be completed in 2011.
The company, which reports in U.S. currency, had $48.8-million or 40 cents per share of net income in its fiscal second quarter.
That's up from just $7.1-million or 6 cents per share in the year-earlier period, when the global economy was still mired in a major recession.
Revenue increased to $326.8-million, up from $244.8-million a year before.
The company spent $34.5-million to ramp up a sock factory in Honduras and open a new Barbados head office during the quarter. It also spent $15.3-million to acquire a manufacturing plant in Bangladesh.