Lower sales in its military boot segment negatively affected third quarter results at US-based producer of military, western, and work footwear and bar code products McRae Industries, Inc.

Consolidated net revenues for the third quarter slipped to $16.2 million from $17.1 million in the third quarter of fiscal 2006, due to the reduced sales of bar code products and military combat boots to the US government, although this was partially offset by increased sales of western and work boot products.

Net revenues for the military boot business totalled $5.1 million compared with $5.9 million, due to lower military combat boot requirements related to the completion of a former contract with the US government in September 2006.

On a more positive note, net revenues for the western and work boot business increased to $8.9 million from $8 million, primarily attributable to strong demand for John Deere branded footwear products, which more than offset the decline in the fashion segment of the western boot market.

Consolidated net revenues for the first nine months also declined year-on-year, falling 9% to $50.from $56.1 million. This decline was again attributed to the reduced requirements for military combat boots for the government and weaker than anticipated sales of bar code products.

For the nine-month period, net revenues for the military boot business totalled $12.4 million compared with $17 million, and net revenues for the western and work boot business climbed to $29.5 million from $28.3 million.