Culp sales fall 9.1% in 1Q
By Furniture Today Staff -- Furniture Today, September 8, 2008
HIGH POINT — Fabric supplier Culp Inc. said its sales fell 9.1% in its first fiscal quarter amid continuing weakness in its mattress ticking and upholstery fabric businesses.
The company said the upholstery fabric segment was weaker than expected, but officials were pleased with the mattress ticking business, which had a 2.7% decline in sales but recorded operating income of $4.2 million.
Upholstery fabric sales, including cut and sewn kits, fell 17% and the segment had an operating loss of $1.4 million.
“The retail climate we are facing so far this year, particularly in the furniture industry, is as difficult as we have seen in many years,” said Frank Saxon, CEO. “However, we are working diligently to strengthen our business models in both divisions and increase the value we are providing our customers in terms of product innovation, delivery performance and quality.”
Net income in the quarter ended Aug. 3 was $781,000 or 6 cents per share. That's 8.2% below the same quarter a year ago, when profits totaled $851,000 or 7 cents per share.
Sales totaled $59.3 million, down from $65.2 million in the same quarter last year.
| Culp Inc. | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| (a) Includes pretax restructuring expense of $402,000 in the 2008 quarter and $432,000 in the 2007 quarter. |
|||
| Quarter ended 8/3 | 2008 | 2007 | Change |
| Sales | $59,321,000 | $65,230,000 | (9.1%) |
| Operating income | 2,018,000 | 2,735,000 | (26.2%) |
| Net income (a) | 781,000 | 851,000 | (8.2%) |
| Earnings per share | 0.06 | 0.07 | (14.3%) |
