Natuzzi reports $3.3M 4Q loss; sales off 1.5%
By Furniture Today Staff -- Furniture Today, April 2, 2006
Santeramo In Colle, Italy — Upholstery giant Natuzzi reported a net loss of $3.3 million in the fourth quarter, an improvement from a net loss of $12.1 million in the same quarter a year earlier.
For the year, however, the company reported a net loss of $20.8 million, compared with earnings of $22.9 million in 2004. Cash flow from operations came to $28.9 million, down from $85 million the previous year.
Fourth-quarter sales decreased 1.5% from a year earlier to $226.6 million, despite a 4.1% rise in total seats sold. Sales in the Americas jumped 19.7% to $77.2 million, but the gain was offset by weakness elsewhere in the world.
Leather-upholstered furniture sales in the fourth quarter amounted to $175.3 million, up 6.4% from a year earlier, while fabric-upholstered furniture sales were down 12.9% to $30.4 million.
Natuzzi-branded products represented 61.5% of upholstery sales in the quarter, or $126.5 million, down 18.2% from a year earlier. Sales for the Italsofa promotional line increased by 75.7% to $79.2 million.
For the full year, Natuzzi's sales fell 11.1% to $834 million, and units sold declined 8.4%.
Chairman and CEO Pasquale Natuzzi said he was encouraged by the company's $1.2 million in positive earnings before taxes in the fourth quarter, after four quarters in a row of losses.
"In 2006 we will continue to be focused on the initiatives that should make our operations more efficient and profitable," he said.
"At the same time, we have to take into consideration that the industry and currency scenario for 2006 appears to be characterized by the same uncertainties experienced last year," he added. "In light of the above, we confirm the previously announced targets for 2006, with a positive net profit margin at most at 3% together with an increase in units sold of about 5%."
| Natuzzi (a) | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 12/31 | 2005 | 2004 | Change |
| (a) In European euros, except earnings per share, which are in dollars. (b) Converted at the rate of 1 euro = $1.189 for the 2005 three months, 1 euro = $1.2991 for the 2004 three months, 1 euro = $1.2449 for the 2005 year and 1 euro = $1.2438 for the 2004 year. |
|||
| Sales | 190,600,000 | 193,600,000 | (1.5%) |
| Operating income | (5,400,000) | 2,800,000 | — |
| Net income | (2,800,000) | (9,300,000) | — |
| Earnings per share (b) | ($0.06) | ($0.22) | — |
| Year ended 12/31 | 2005 | 2004 | Change |
| Sales | 669,900,000 | 753,400,000 | (11.1%) |
| Operating income | (14,700,000) | 40,000,000 | — |
| Net income | (16,700,000) | 18,400,000 | — |
| Earnings per share (b) | ($0.39) | $0.42 | — |
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Natuzzi 3Q sales drop 11.1%
Dec 4, 2005
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