Culp swings back to profit
By Larry Thomas -- Furniture Today, September 3, 2006
High Point — Upholstery fabric and mattress ticking supplier Culp Inc. eked out a profit of $132,000 in its first fiscal quarter, reversing a $3.9 million net loss in the same period a year ago.
Culp officials said the turnaround indicates the company is starting to see the benefits of months of sometimes-painful restructuring efforts.
"We have achieved improved profitability in each operating segment, and we are encouraged by the progress we have made — and continue to make — as we adapt to a leaner and more agile business model," said Rob Culp, chairman and CEO.
The quarterly profit, which included restructuring costs of $985,000, was recorded in spite of sales that essentially were flat.
Revenues for the quarter ended July 30 came to $62.6 million, compared with $62.3 million in last year's first fiscal quarter.
Culp said mattress ticking sales were down 4.7% to $21.8 million, but that was offset by a 3.3% gain in upholstery fabric sales, which totaled $40.7 million.
During a conference call with securities analysts, Culp officials said 58% of the upholstery fabric sales came from its facilities in China, and they didn't rule out further cuts in domestic production if demand continues to wane.
"We believe it is important to keep producing fabric in the U.S. ... but we have to be profitable," said Frank Saxon, president. "We will evaluate anything and everything to adjust our fixed cost structure. There will be no stone unturned."
Saxon said company-wide sales probably will decline about 10% in the second quarter, which ends in late October. That figure includes a 10% to 15% drop in upholstery fabric sales and a single-digit decline in mattress ticking.
He said sluggish retail furniture sales and high fabric inventories at upholstery manufacturers will keep demand soft.
| Culp Inc. | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 7/30 | 2006 | 2005 | Change |
| (a) Includes after-tax restructuring and related charges of $985,000 in the 2006 quarter and $3.3 million in the 2005 quarter and income tax benefits of $3,000 in the 2006 quarter and $2.3 million in the 2005 quarter. |
|||
| Sales | $62,585,000 | $62,340,000 | 0.4% |
| Operating income | 1,485,000 | (3,301,000) | — |
| Net income (a) | 132,000 | (3,941,000) | — |
| Earnings per share | 0.01 | (0.34) | — |
Culp sales drop 25.4%, with profit of $1.7M
07/06/2009Culp earns profit as sales fall 25.4%
06/24/2009Culp reverses loss, earns profit in 1Q
08/28/2006Culp sales dive, profits rise
09/06/2009Culp 3Q sales down 9.8%
02/23/2005
