Culp posts best results in 5 qtrs.
By Furniture Today Staff -- Furniture Today, November 30, 2003
High Point — Improving demand and a restructuring of its upholstery fabric division helped supplier Culp Inc. to its best year-over-year quarterly sales comparison in five quarters in its second quarter, although sales slipped 1.2%.
Sales for the three months ended Nov. 2, 2003 were $82.7 million, compared with $83.7 million in last year's comparable quarter.
Net income for the quarter was $3.1 million, an improvement over a net loss of $6.6 million in the second quarter last year, including restructuring and related charges of $14.5 million. Excluding those charges, net income in last year's quarter was $2.3 million.
For the six months, Culp had sales of $156.4 million, down 7.9% from $169.7 million in the same period a year ago. The latest six months included 27 weeks versus 26 weeks last year.
Net income for the first half was $2.7 million. Including restructuring charges and the cumulative effect of accounting change, the company reported a net loss in last year's first half of $29.8 million. Excluding those charges, net income for last year's first six months was $3.2 million.
In addition to better-than-expected demand for upholstery fabrics and ongoing strength in mattress ticking, Culp said its second-quarter performance "reflects the higher capacity utilization and gains in manufacturing efficiencies associated with recent restructuring initiatives within the upholstery fabrics segment (Culp Decorative Fabrics)."
The upholstery fabric business continues to be affected by imports and by leather sales, the company said, adding, "There is still considerable uncertainty about the immediate trend in demand for upholstery fabrics. However, as our latest sales volumes and profitability have indicated, we believe that Culp is well positioned to capitalize on even a modest recovery."
| Culp Inc. | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are loses or declines. | |||
| Quarter ended 11/220032002Change | |||
| (a) Includes pretax restructuring expense of $13.4 million in both periods and income tax benefits of $4.3 million in the 2002 quarter and $3.8 million in the 2002 six months. The 2002 six months also includes a $24.2 million extraordinary charge, the cumulative effect of an accounting change. (b) The 2003 six months is 27 weeks; the 2002 six months is 26 weeks. |
|||
| Sales | $82,731,000 | $83,740,000 | (1.2%) |
| Operating income | 6,442,000 | 4,262,000 | 51.1% |
| Net income | 3,146,000 | (a)(6,590,000) | — |
| Earnings per share | 0.27 | (0.57) | — |
| 6 months ended 11/2(b) | 2003 | 2002 | Change |
| Sales | $156,407,000 | $169,748,000 | (7.9%) |
| Operating income | 7,410,000 | 7,679,000 | (3.5%) |
| Net income | 2,735,000 | (a)(29,826,000) | — |
| Earnings per share | 0.23 | (2.61) | — |
-
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