Natuzzi posts 1.8% sales decline, larger loss in fourth quarter
Carole Sloan -- Furniture Today, April 2, 2012
SANTERAMO IN COLLE, Italy — Leather upholstery major Natuzzi said fourth-quarter sales were 1.8% below the fourth quarter of 2010, and its net loss widened due to continuing economic weakness in the U.S. and Europe.
The company, which reports some of its financial data in U.S. dollars, reported a net loss of $21.4 million or 4 cents per share for the quarter ended Dec. 31. That compares with a loss of $1.8 million, which was break-even on a per-share basis, in the previous year's fourth quarter.
High Point-based Natuzzi Americas had a sales increase in the quarter. That segment has sales of 38.2 million euros, or about $50.8 million - an increase of 3.8% from 36.8 million euros, or about $48.4 million, in the fourth quarter of 2010.
For the calendar year, however, sales at Natuzzi Americas fell 12.6% to 143.5 million euros, or about $190.8 million.
Worldwide sales for 2011 totaled $677.3 million, down 6.2% from $722.2 million in 2010.
The company reported a net loss for the year of $27.3 million or 5 cents per share. That's up from a loss of $15.3 million or 3 cents per share in 2010.
"In 2011, we faced a difficult economic situation characterized by the sovereign debt crisis in Europe and the consequent decline in consumer confidence," said Chairman and CEO Pasquale Natuzzi. "On top of that, we also experienced an increase in raw materials prices and cost of labor, as well as unfavorable trends in currency markets, together with the negative effects deriving from the Chinese plant relocation."
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