Natuzzi sales climb 7.7%, but weak orders a concern
By Furniture Today Staff -- Furniture Today, November 19, 2006
Santeramo In Colle, Italy — Natuzzi said its worldwide sales climbed to the equivalent of $202 million in the third quarter, up 7.7% from the same period a year ago.
Sales were up 1.3% in the Americas, to $76.6 million, and were stronger in Europe, where the gain was 12.1%.
Net earnings came to the equivalent of $1 million, an improvement from a net loss of $2.4 million a year earlier.
Sales of Natuzzi branded products increased 2.8% in the third quarter to $106.8 million, while sales of the Italsofa promotional line jumped 18.8% to $74.2 million.
Natuzzi Group CEO Ernesto Greco said that despite the higher net sales in the quarter, orders have been trending down.
"In fact, in the last few months the group has been reporting a decrease in the order flow, which could lead us to an adjustment of the production level," Greco said. "This decrease is mainly due to the general weak retail environment for home furnishings, confirmed at the recent High Point furniture market, accompanied by persisting unfavorable currency conditions.
"Despite this, the company expects to report for the full year 2006 a high-single-digit increase in revenues over year 2005, thanks to the existing order backlog," he said.
Greco said the company continues to invest in the Natuzzi brand and is focusing on "an extensive process re-engineering program" that should improve efficiencies, and on reorganizing sales activities "to better envisage customers' needs and improve their satisfaction."
| Natuzzi(a) | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 9/30 | 2006 | 2005 | Change |
| (a) In euros, except for earnings per share, which are in U.S. dollars (b) Includes income tax benefits of 500,000 euros in the 2005 quarter and 900,000 euros in the 2005 nine months. (c) Converted at the rate of 1 euro=US$1.2742 for the 2006 quarter, 1 euro=US$1.2196 for the 2005 quarter. 1 euro=US$1.2455 for the 2006 nine months and 1 euro=US$1.2628 for the 2005 nine months. |
|||
| Sales | 158,500,000 | 147,200,000 | 7.7% |
| Operating income | (1,100,000) | 0 | - |
| Net income | 800,000 | (b)(2,000,000) | - |
| Earnings per share (c) | $0.01 | ($0.05) | - |
| 9 months ended 9/30 | 2006 | 2005 | Change |
| Sales | 542,400,000 | 479,400,000 | 13.1% |
| Operating income | 19,900,000 | (9,300,000) | - |
| Net income | 17,500,000 | (b)(13,900,000) | - |
| Earnings per share (c) | $0.40 | ($0.32) | - |
-
Jennifer reports 2Q loss of $6.4 million
May 3, 2010 -
Tax refund boosts profits for Chromcraft in 4Q
Apr 5, 2010
Featured Company
-
Wright Labels
Bill and Tom Wright founded Wright of Thomasville in 1961 on the idea that printing was a creative medium and the belief that "a promise made is a promise kept." The Wright brothers focused their attention on providing exceptional printing for the... more
VIEW ALL GALLERIES
