Tempur-Pedic profits climb 40.2% in third quarter
Larry Thomas -- Furniture Today, October 21, 2011
LEXINGTON, Ky. — Powered by a 28% jump in North American mattress sales, specialty bedding producer Tempur-Pedic said third-quarter profits shot up 40.2%.
The company, which specializes in upper-end memory foam bedding, said worldwide sales increased 29.5% to $383.1 million.
"We are pleased with our third quarter results globally," said Mark Sarvary, CEO. "Our strategic investments in brand awareness and new products continue to deliver growth. We remain confident of the potential to grow sales and earnings over the long term."
Net income for the quarter ended Sept. 30 totaled $61.9 million or 90 cents per share. That's up from $44.2 million or 62 cents per share in last year's third quarter.
Mattress sales in North America, the company's largest business segment, totaled $192.7 million, an increase of 27.7% from $150.9 million in the same quarter last year.
For the nine months ended Sept. 30, worldwide sales totaled $1.05 billion, an increase of 29.3% from $812.7 million in the first nine months of 2010.
Nine-month net income totaled $163.3 million or $2.34 per share. That's a 47.3% jump from $110.8 million or $1.51 per share in the same period last year.
As a result of its strong third quarter, Tempur-Pedic raised its sales and earnings projections for the year. Sales are now projected to be $1.405 billion to $1.425 billion, while earnings per share are projected to be $3.12 to $3.17.
Both estimates are up smartly from July, when the company projected 2011 sales at $1.37 billion to $1.4 billion, and earnings per share at $3.07 to $3.14.
In 2010, the company had sales of $1.105 billion and earnings of $2.16 per share.
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