Culp sales jump 21.1%
By Larry Thomas -- Furniture Today, March 8, 2010
HIGH POINT —
Buoyed by improvements in its upholstery fabric and mattress ticking businesses, Culp Inc. had a profit of $3 million in the quarter ended Jan. 31 and recorded its first year-over-year sales gain in two years.
The quarterly profit reversed a net loss of $450,000 in the quarter ended Feb. 1, 2009.
Sales in the most recent period, the third quarter of Culp’s fiscal year, were up 21.1% from a year ago to $54 million. Mattress ticking sales were up 7% in the quarter, while upholstery fabric sales leaped 39%.
“We have seen a significant improvement in our upholstery fabrics performance primarily due to a better macroeconomic environment and favorable results from our sales and marketing initiatives,” said Frank Saxon, CEO. “This period marks the first year-over-year sales increase in this business segment in three years, and the highest quarterly profit in over five years.”
For the nine months ended Jan. 31, sales were $149.2 million, down 4.5% from $156.2 million in the nine months ended Feb. 1, 2009.
For the fourth fiscal quarter, Saxon said Culp is projecting an increase of 10% to 14% in mattress ticking sales and a jump of 13% to 17% in upholstery fabric sales, compared with the same period a year earlier.
Fourth-quarter pre-tax income should be $3.5 million to $4.2 million, he said.
Culp Inc.
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| Quarter ended 1/31 | 2010 | 2009 | Change |
| (a) Includes pretax restructuring expense of $26,000 in the 2010 quarter, $402,000 in the 2009 quarter and $9.4 million in the 2009 nine months, and a restructuring credit of $317,000 in the 2010 nine months. Also includes a $31.2 million expense for a valuation allowance against deferred tax assets in the 2009 nine months. |
|||
| Sales | $53,980,000 | $44,592,000 | 21.1% |
| Operating income | 4,222,000 | 1,073,000 | 293.5% |
| Net income (a) | 3,000,000 | (450,000) | — |
| Earnings per share | 0.23 | (0.04) | — |
| 9 months ended 1/31 | 2010 | 2009 | Change |
| Sales | $149,173,000 | $156,176,000 | (4.5%) |
| Operating income | 10,662,000 | 1,799,000 | 492.7% |
| Net income | 7,755,000 | (40,538,000) | — |
| Earnings per share | 0.60 | (3.20) | — |
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Culp sales drop 25.4%, with profit of $1.7M
Jul 6, 2009
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