Culp earnings jump
Staff Staff -- Furniture Today, June 17, 2010
High Point, N.C. - Fabric supplier Culp Inc. said net income for the quarter ended May 2 was more than triple the same quarter last year as sales shot up 19.9%.
The company, a major supplier of mattress ticking and upholstery fabric, reported a profit of $5.4 million or 41 cents per share for the quarter. That compares with net income of $1.7 million or 13 cents per share in the same period in 2009.
Culp said both its mattress ticking and upholstery fabric segments turned in strong performances. Mattress ticking sales jumped 26%, while upholstery fabric sales were 13% ahead of the same quarter last year.
Total sales for the period, the fourth quarter of Culp's fiscal year, were $57.2 million, up from $47.8 million a year ago.
"We are pleased with our performance for the fourth quarter, capping off a year of significant growth and progress for Culp," said Frank Saxon, CEO. "We are encouraged by the recent improvement in consumer demand trends, as evidenced by an overall 20% sales gain compared with a year ago."
Saxon said he also was pleased with the numbers for the fiscal year, which saw the company ring up a profit of $13.2 million or $1.01 per share.
That reversed a net loss of $38.8 million or $3.07 per share, from the previous fiscal year. Fiscal 2009's results had included a one-time charge of $27.2 million to set up a valuation allowance against the company's net deferred tax assets.
Full-year sales totaled $206.4 million, an increase of 1.2% from the previous fiscal year.
Saxon said mattress ticking sales were essentially even with the previous year, but upholstery fabric sales rose 3.4%. He said that marked the first annual increase in upholstery fabric sales in 10 years.
"After a multi-year restructuring process, we have established a leaner and more agile manufacturing platform, including a wholly owned China operation that is scalable and vertical, but not capital-intensive," Saxon said. "We also have one remaining U.S. manufacturing facility that supports our customer needs."
The company is projecting sales for the current quarter to be 11% to 16% ahead of the same quarter last year. Mattress ticking sales are expected to be up 15% to 20%, while upholstery fabric sales are expected to rise 5% to 10%.
By Larry Thomas from HTT sister publication Furniture Today
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