Athletic and sporting goods company Russell Corporation has reported fiscal third quarter 2005 earnings of $15.8 million compared with last year's $422.7 million in revenues. Operating income was $33.9 million in the quarter, down from last year's $44.0 million, as operational issues disclosed in the second quarter were exacerbated by Hurricanes Katrina and Rita. In addition to the previously announced impact of the elimination of the COO position in the third quarter, the company stated that it had also experienced significant economic losses attributed to the storms. The company lost more than 40 containers of product during hurricane Katrina, as the company's primary ports of entry for the export of components (fabric and cut parts) and the import of finished goods were damaged in the storm.

With aggressive actions, the estimated losses associated with the hurricanes have been reduced to a range of $0.13 to $0.16 on a per share basis. The company does expect to recover a significant portion of these extra expenses from its insurance carriers.

Sales in the Sporting Goods segment increased by 5%, or nearly $10 million, with sales from acquisitions owned for less than a year contributing approximately $33 million. Continued strength in Dri-Power performance products for the Russell Athletic Group partially offset declines due to product availability. Sales in the Spalding Group were down slightly from the prior year, while Brooks continued to perform exceptionally well, contributing nearly $32 million in revenues in the quarter and achieving its profit plan. In the Activewear segment, demand remained strong for Jerzees products.

Russell Corporation brands include Russell Athletic, Spalding, Brooks, Huffy Sports, Bike, Moving Comfort, AAI and Mossy Oak.