Foamex sales drop 11.1% in fourth quarter
CEO says restructuring has improved efficiencies, reduced costs
By Furniture Today Staff -- Furniture Today, April 7, 2008
LINWOOD, Pa. – Foamex, a major supplier of polyurethane foam, reported a fourth-quarter net loss of $35.6 million on an 11.1% drop in sales.
The company said sales were weak in its foam, carpet cushion and technical products segments.
The net loss was due largely to one-time restructuring charges of $1.2 million and a $36.9 million write-down of the value of goodwill.
Sales for the quarter totaled $263.9 million, down from $296.8 million in the fourth quarter of 2006.
The quarterly loss, which equals $1.51 per share, compares with net income of $1.15 million, or 12 cents per share, in the same period in 2006.
For the full year, sales were $1.17 billion, a 9.1% drop from $1.29 billion in 2006. The 2007 net loss totaled $46.7 million, or $2.14 per share. That compares with net income of $12.35 million, or $1.28 per share, in 2006.
“This year we made significant progress restructuring and streamlining operations,” said Jack Johnson, president and CEO. “We took actions to reduce excess capacity and improve plant efficiencies, while significantly lowering overheads.”
Foamex, which emerged from Chapter 11 bankruptcy protection in February 2007, said it shaved $95 million off its debt load during the year. Total debt was $534.1 million at year’s end.
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