1Q revenue drops 6.1% at Simmons Canada
By Furniture Today Staff -- Furniture Today, May 26, 2003
Mississauga, Ontario — SCI Income Trust, parent of bedding producer Simmons Canada, said first-quarter revenue was C$29.2 million, down 6.1% from C$31.1 million in last year's first period. Net income dropped 49.2% to C$1.4 million from C$2.7 million last year.
"We had a weak first quarter," said Terry Pace, president and chief executive officer. "Positive retailer reactions to our 2003 product lineup partially offset the reduced consumer participation in some sectors of our market and retailer base. Margins were negatively affected by product mix, fixed factory costs allocated over fewer units of production, and introductory pricing on new products."
SCI has reduced its monthly cash distribution from 10 Canadian cents per unit to eight Canadian cents.
Pace is optimistic about prospects for the rest of the year. "The war in Iraq is substantially over and SARS is under control, consequently we expect our market conditions to improve throughout the balance of the year," he said.
