Market Watch:
Lakeland Industries, Inc., a market leader in protective apparel, today announced that, through its recently acquired Brazilian subsidiary Qualytextil, the Company has received a contract worth approximately US$700,000 from Neo Energy Group, a major holding company in Brazil owning several electric utilities, for customized protective clothing. This award builds upon existing business with Lakeland and is representative of the high-caliber customers doing business with Qualytextil. Neo Energy will be using Lakeland garments for fire protection and electric arc exposure.
With an in-house sales force of 20 employees and nearly 30 outside sales representatives, Qualytextil covers the entire country of Brazil, selling directly to end users. Qualytextil markets products to major state-owned companies and agencies and the main oil and chemical companies. The Brazilian operations, including manufacturing, sales and marketing, warehousing, and distribution, benefit from State provided tax incentives, favorable labor rates, and proximity to economical transportation for local and international distribution of garments. Lakeland expects its Brazilian sales and operating earnings to remain strong in their local currency for the Company’s fiscal third quarter ended October 31, 2008. Exchange rate fluctuations, such as the recent strengthening of the U.S. dollar against the Brazilian Real, may impact the Company’s consolidated financial results.
Logo from Lakeland Industries.