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Sealy sales up 12.8%

By Furniture Today Staff -- Furniture Today, April 24, 2005

Archdale, N.C. — Sealy Mattress recorded a 12.8% sales gain in its first quarter as net income soared 94.1%, compared with first-quarter 2004.

Sales in the quarter ended Feb. 27 were $359 million, up from $318.2 million a year ago. Net profits jumped to $21.9 million from $11.3 million.

Both quarters included royalty income, $2.6 million in 2005 and $3.4 million in 2004.

The bedding industry sales leader said total domestic sales in the latest quarter were $286.7 million, a $32.2 million gain over year-earlier results. Sealy attributed the gain to a 1.7% increase in volume and a 10.8% increase in average unit selling price.

It said the AUSP increase was due primarily to price increases announced in May 2004 to offset rising steel costs, and to an improved sales mix.

Total international sales were up 13.5% to $72.3 million, compared with $63.7 million in the first quarter of 2004. Sealy said the increase "was significantly influenced by favorable exchange rate fluctuations, most notably in our European and Canadian markets, where local currency sales gains of 4.3% and 8.2%, respectively, translated into gains of 11.3% and 16.8%, respectively, in U.S. dollars."

In the latest quarter, gross margin was $159 million, or 44.3% of sales, compared with 42.3% of sales in the comparable 2004 period. Return on sales, or net income as a percentage of sales, nearly doubled from 3.5% in the 2004 first quarter to 6.1% in the latest quarter.

Chairman and CEO David McIlquham said, "We continue to achieve strong sales increases and mix improvements from our new products."

Sealy
Quarter ended 2/27	2005	2004	Change
(a) Includes pretax royalty income of $2.6 million in the 2005 quarter and $3.4 million in the 2004 quarter.
Sales	$359,023,000	$318,198,000	12.8%
Operating income	50,719,000	32,971,000	53.8%
Net income (a)	21,853,000	11,261,000	94.1%

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Sealy 1Q sales up 12.8%

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Sealy sales rise 12.8% in 1Q

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