VF Corp. profits from Timberland acquisition

VF Corp.’s acquisition of Timberland last September paid off big in the fourth quarter, according to the North Carolina-based apparel company’s earnings report.The Stratham-based footwear and apparel subsidiary provided some $549 million to VF’s $2.9 billion revenue for the quarter, earning about $50 million in operating income, excluding acquisition-related expenses of $6.7 million, VF said Thursday.VF’s net income for the quarter was about $258 million, or $2.28 a share. Some 30 cents per share of that profit was due to Timberland, the company said.For the year, Timberland accounted for $713 million of the total $7.7 billion in revenue and 60 cents of the $7.98 earnings per share.The Timberland transaction and restructuring cost VF approximately $6.7 million (4 cents per share) in the fourth quarter and $33 million (22 cents per share) for the full year as well as a $202 million pre-tax noncash impairment charge taken in the fourth quarter of 2010.Timberland operating margin of 12.7 percent, was slightly lower than VF’s margin of 13.2 percent.Going forward, VF said it projects that Timberland should earn $1.10 per share in 2012 (excluding acquisition-related expenses estimated at 20 cents per share), with a projected operating margin of over 11 percent. — BOB SANDERS/NEW HAMPSHIRE BUSINESS REVIEW