Tempur Sealy International posts $40.2 million third-quarter profit
Jay McIntosh -- Furniture Today, November 7, 2013
LEXINGTON, Ky. — Tempur Sealy International reported earnings of $40.2 million or 65 cents per share in the third quarter on sales of $735.5 million, a figure that more than doubled from a year earlier on Tempur-Pedic's acquisition of Sealy.
In the comparable 2012 quarter the company posted a loss of $2 million or 3 cents per share, largely due to a hefty tax provision.
Tempur-Pedic completed its acquisition of Sealy in March, forming Tempur Sealy International. The company said its adjusted earnings per share in the latest quarter amounted to 73 cents, compared with 70 cents a year earlier, excluding Sealy.
With the addition of Sealy, total sales for the company were up 111.4% from $347.9 million in the 2012 third quarter.
Tempur North America sales in the latest quarter increased 0.6% from a year earlier to $242.4 million, with bedding sales up 0.2% to $220.6 million and sales of other products up 4.8% to $21.8 million, the company said.
Tempur International sales decreased 3.6% to $103.2 million.
Sealy sales for the quarter were $389.9 million, but a comparison for the 2012 quarter was not disclosed.
"Overall our third quarter was in line with expectations," said CEO Mark Sarvary. "The steps we have taken to improve Tempur North America's performance showed progress and led to a slight sales increase during the quarter. Our Sealy business also showed growth during the quarter.
"However, Tempur International results were slightly below plan due to continued weakness in Europe. The integration with Sealy continues to progress well, cost synergies continue to track to our plan, and we remain very excited about our ability to capture significant revenue synergies."
For the full year, including Tempur-Pedic results and Sealy results from the acquisition date of March 18, the company said it expects net sales of $2.425 billion to $2.45 billion and adjusted earnings per share in the $2.25 to $2.40 range.
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