Foamex sales drop 22%, net income rises
By Furniture Today Staff -- Furniture Today, August 24, 2008
LINWOOD, Pa. — Polyurethane foam supplier Foamex International said second-quarter sales were 22% below last year's second quarter, but a one-time gain boosted net income above year-ago levels.
The company said sales declines were evident across all segments of its business, and that it continues to be affected by higher raw material costs.
“As a result of our cost-reduction efforts, we began to see positive bottom-line results at the end of the second quarter,” said Jack Johnson, president and CEO. “We remain confident in our ability to manage the business through these challenging times.”
Sales for the quarter ended June 29 were $240.7 million, compared with $308.5 million in the same quarter last year. Net income was $9.7 million, or 18 cents per fully diluted share. In last year's second quarter, the figures were $7.1 million, or 30 cents per fully diluted share.
The most recent quarter included a one-time gain of $19.6 million from a debt restructuring effort. The company also issued additional shares of common stock during the quarter, which reduced per-share earnings.
For the six months ended June 29, sales fell 21.6% to $482.2 million. The company recorded a first-half net loss of $33.3 million, or $1.15 per share. That figures included a first-quarter goodwill impairment charge of $38.5 million.
In the first half of last year, the company had a net loss of $10.5 million, or 52 cents per share.
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