Hanesbrands sees no material impact from Chinese decision to let currency fluctuate
By APWednesday, June 23, 2010
Hanesbrands: Yuan fluctuation won’t impact results
WINSTON-SALEM, N.C. — Hanesbrands Inc. on Wednesday said it will not see a material impact from China’s decision to let the value of its currency fluctuate.
The move will not alter the apparel maker’s manufacturing or supply chain, Hanesbrands said in a release.
China announced over the weekend it would give up a two-year-old peg of its currency to the U.S. dollar, allowing the yuan to appreciate in value.
Hanesbrands said it has little exposure to currency fluctuation. A 5 percent exchange rate change would have a $1 million to $1.5 million pretax effect on company costs in 2011, and an even smaller impact in 2010, the company said.
Most the company’s products are produced in company-owned factories in the Caribbean Basin, Central America and East Asia. It produces fabric in Nanjing, China, which uses U.S. yarn and is sent to be sewn in Vietnam and Thailand.
The company said other cost pressures are affecting industry supply chains, including higher cotton, energy and labor.
Hanesbrands shares dipped 9 cents to close at $26.16.
