Quiksilver swings to 2nd-quarter profit

Quiksilver Inc., which makes outdoor clothing and equipment, on Monday reported a fiscal second-quarter profit, reversing a year-ago loss which included hefty costs related to now-discontinued operations.

However, weak outlook sent shares down 52 cents, or 14.4 percent, to $3.10 during aftermarket trading.

The company also said it negotiated a $150 million term loan and $200 million line of credit to improve its liquidity.

Profit for the quarter ended April 30 totaled $2.8 million, or 2 cents per share, compared with a loss last year of $206.2 million, or $1.59 per share, which included losses from discontinued operations of $244.9 million.

Excluding one-time items, including a $1.7 million severance charge, net income totaled 5 cents per share in the latest period. Revenue fell 17 percent to $494.2 million from $596.3 million last year.

Analysts polled by Thomson Reuters, on average, predicted a profit of 4 cents per share on slightly higher revenue of $502.1 million. Analyst estimates typically exclude one-time items.

Chief Executive Robert B. McKnight said in a statement that he has not seen any improvement in overall business trends.

"With customers proceeding cautiously in this uncertain market, orders for the second half are building more slowly than in past periods and we continue to look for opportunities to streamline the business and improve profitability," McKnight said in a statement.

Third-quarter revenue is expected to be down in the mid-teen percentage range, he sad.

Quiksilver will receive $150 million over five years from Rhone, a private equity firm, and has secured $200 million credit facility.