Sealy profits climb 31%
By Larry Thomas -- Furniture Today, April 5, 2010
ARCHDALE, N.C. —
Bedding producer Sealy Corp. said profits for the quarter ended Feb. 28 jumped more than 31% on a 9.6% gain in sales.
The company credited the successful launch of a revamped Stearns & Foster line, improving retail demand, and operational improvements for the gains.
“We are encouraged by the stabilization we have seen in retail demand across our business segments and with the signs of stability in both the macroeconomic and consumer credit market environments,” said Larry Rogers, president and CEO. “We continue to believe our product innovation and operational improvements have put the company in a strong strategic position to accelerate gains in profitable market share and drive increasing value for our shareholders.”
Worldwide sales for the period, the first quarter of Sealy's fiscal year, totaled $339.6 million. That compares with $310 million in the quarter ended March 1, 2009.
U.S. bedding sales were up 4.6% to $241.6 million. Domestic unit volume rose 2.4% and the average unit selling price was up 2.2%, the company said.
The quarterly profit totaled $5.7 million or 3 cents per share. That compares with $4.3 million or 5 cents per share in the quarter ended March 1, 2009. Per-share earnings were lower in the most recent quarter because the company has significantly more shares outstanding than it did a year ago.
Sealy
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| Quarter ended 2/28 | 2010 | 2009 | Change |
| (a) Includes restructuring and asset impairment expenses of $113,000 in the 2010 year; royalty income, net of expense, of $4 million in the 2010 year and $3.4 million in the 2009 year; gain on sale of subsidiary stock of $1.3 million in the 2009 year; and equity in earnings of unconsolidated affiliates of $943,000 in the 2010 year. |
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| Sales | $339,627,000 | $309,976,000 | 9.6% |
| Operating income | 31,164,000 | 20,944,000 | 48.8% |
| Net income (a) | 5,714,000 | 4,344,000 | 31.5% |
| Earnings per share | 0.03 | 0.05 | (40.0%) |
Gross margin for the quarter was 41.3%, some 3.3 percentage points more than in the same quarter of the previous fiscal year. The increase was driven by a jump of two percentage points in the U.S. market.
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Sealy earnings jump 31% as sales rise 9.6%
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