Natuzzi sales decline 16.8%, while restructuring cuts loss
By Jay McIntosh -- Furniture Today, November 30, 2009
SANTERAMO IN COLLE, Italy — Restructuring and new operating initiatives helped upholstery giant Natuzzi dramatically reduce its third-quarter loss despite a 16.9% decline in sales, the company said.
The net loss was about 900,000 euros, compared with a loss of 16.2 million euros in the same period a year earlier.
“Third-quarter results represent the second consecutive quarter during which we achieved positive operating income, despite the unfavorable economic environment,” said Pasquale Natuzzi, chairman and CEO.
“The restructuring and rationalization process continue to benefit our results. During this time, we set up various initiatives and processes such as product standardization and innovation, improvement of the raw material procurement, and reduction of lead times,” he said. “I am confident these activities will continue to generate positive results.”
Sales in the quarter amounted to 118.3 million euros, down from 142.3 million euros in the comparable 2008 period. Operating income was 2.7 million euros, compared with an operating loss of 12.2 million euros a year ago.
Natuzzi's gross profit margin surged to 40.1% in the latest quarter, from 25.8% a year earlier.
In U.S. dollars, third-quarter sales were $169.4 million, while the net loss was $1.4 million, compared with a loss of $23.2 million a year ago.
Europe accounted for 54.1% of the company's sales in the latest period, with the Americas at 32.6% and the rest of the world at 12.9%.
Natuzzi (a)
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| Quarter ended 9/30 | 2009 | 2008 | Change |
| (a) In Euros. |
|||
| Sales | 118,300,000 | 142,300,000 | (16.9%) |
| Operating income | 2,700,000 | (12,200,000) | — |
| Net income | (900,000) | (16,200,000) | — |
| Earnings per share | (0.02) | (0.30) | — |
| 9 months ended 9/30 | 2009 | 2008 | Change |
| Sales | 363,200,000 | 483,900,000 | (24.9%) |
| Operating income | (12,700,000) | (29,500,000) | — |
| Net income | (15,200,000) | (42,100,000) | — |
| Earnings per share | (0.28) | (0.77) | — |
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