Sealy earnings rise 7.2% in first quarter
Sales up 4.3%, driven by international business
By Furniture Today Staff -- Furniture Today, April 5, 2007
ARCHDALE, N.C. — Bedding major Sealy Corp. said first-quarter earnings rose 7.2% on a 4.3% increase in sales.
Much of the sales growth came in its international division, where shipments were 18.1% ahead of the previous year’s first quarter and unit volume jumped 33.2%.
Domestically, net sales were only 0.7% ahead of the comparable period a year ago, despite a 4.5% increase in unit volume.
“The momentum in domestic volume … continued during the first quarter as unit growth turned positive, due primarily to the strength in our promotional and specialty bedding product lines,” said David McIlquham, chairman and CEO.
Pricing pressures in the promotional line, however, squeezed margins. For the quarter, the gross margin stood at 43%, compared with 44.7% in last year’s first quarter.
Total sales for the quarter ended Feb. 25 were $412.6 million, compared with $395.7 million in last year’s first quarter.
Net income was $24.6 million or 26 cents per share. That compares with $22.9 million or 30 cents per share in the quarter ended Feb. 26, 2006.
During a conference call with securities analysts, McIlquham said Sealy’s specialty bedding products also performed well during the quarter.
Some of the strongest demand was registered for its latex foam products, and he said the company’s new latex plant in Mountain Top, Pa., recently began production. The plant should be operating on a three-shift production schedule by the end of the third quarter, he said.
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Sealy 1Q earnings up 7.2%
Apr 22, 2007
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