Natuzzi reports 2Q loss as sales decline 20.9%
By Larry Thomas -- Furniture Today, October 5, 2009
Milan — Leather upholstery major Natuzzi reported a second-quarter net loss of 3.9 million euros as sales fell 20.9%.
The net loss was greater than the loss recorded in last year's second quarter. But the company did have operating income of 1 million euros in the most recent quarter due to cost-cutting measures aimed at improving manufacturing efficiencies and reducing product development costs.
The most recent quarter's net loss, which equals 7 euro cents per share, compares with a loss of 2.4 million euros or 4 cents per share in the second quarter of 2008.
Sales totaled 133.6 million euros, compared with 168.8 million euros in last year's second quarter.
In U.S. dollars, sales totaled about $182.1 million in the most recent quarter, compared with $230.1 million in the same quarter last year.
The quarterly net loss in U.S. dollars was approximately $5.4 million. In last year's second quarter, the loss was approximately $3.3 million.
"We are very pleased to have met a break-even in terms of operating income, despite the net sales decrease due to the adverse economic environment," said Pasquale Natuzzi, chairman and CEO. "We are increasing our order flow, and so we are confident for the year-end target of break even in terms of (earnings before interest and taxes)."
For the first six months of the year, sales fell 28.3% to 244.9 million euros.
The six-month net loss totaled 14.3 million euros or 26 cents per share. In the first six months of last year, the loss totaled 26.5 million euros or 48 cents per share.
Natuzzi (a)
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| Quarter ended 6/30 | 2009 | 2008 | Change |
| (a) In euros. |
|||
| Sales | 133,600,000 | 168,800,000 | (20.9%) |
| Operating income | 1,000,000 | (5,100,000) | — |
| Net income | (3,900,000) | (2,400,000) | — |
| Earnings per share | (0.07) | (0.04) | — |
| 6 months ended 6/30 | 2009 | 2008 | Change |
| Sales | 244,900,000 | 341,600,000 | (28.3%) |
| Operating income | (15,400,000) | (17,300,000) | — |
| Net income | (14,300,000) | (26,500,000) | — |
| Earnings per share | (0.26) | (0.48) | — |
