Fruit of the Loom Issues Earnings Warnings

Fruit of the Loom Ltd. warned that its second-quarter earnings will be significantly below expectations because it could not increase production fast enough to meet demand. The maker of underwear and T-shirts did not provide a specific estimate of earnings but said sales will also be lower. The company was expected to earn 49 cents a share, the average estimate of six analysts surveyed by First Call Corp. It earned 90 cents in the year-earlier period. Fruit of the Loom now expects sales in the range of $570 million to $590 million, down from $628 million a year ago. It said active wear is mostly responsible for the manufacturing and sales problems. Fruit of the Loom shares fell $1.38, or 15%, to close at $9.31 on the New York Stock Exchange.