Foamex's 3Q sales decrease 7.1%
By Furniture Today Staff -- Furniture Today, January 27, 2008
Linwood, Pa. — Foamex International, a major supplier of polyurethane foam for furniture and bedding, eked out a $137,000 profit in the third quarter as sales fell 7.1%.
In addition to the sales decline, the company's profits were hurt by a variety of one-time charges of $7.8 million.
Sales in the quarter totaled $290.8 million, compared with $313.6 million in last year's third quarter. The quarter's net income, which equals 1 cent per share, compares with net income of $7.4 million, or 77 cents per share, in the comparable period last year.
Foamex said sales in its foam products division were off 22% in the quarter, while carpet cushion sales tumbled 51%. Sales of automotive products, however, were up 33%.
"Debt reduction continues to be a primary focus for Foamex," said President and CEO Jack Johnson. "We continue to work aggressively to reduce costs and improve operating efficiencies."
He said the company took advantage of its improved free cash flow and asset sales to pay off $46 million in debt during the third quarter. That leaves total debt of $564 million, and he said the company should beat its previously stated goal of cutting debt to $560 million by the end of the year.
In the nine months, sales were down 8.6% to $905.5 million. The nine-month net loss was $9.3 million, or 44 cents per share. In the first nine months of 2006, the company had net income of $11.2 million, or $1.17 per share.
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