Natuzzi eyes domestic plant
By Joan Gunin -- Furniture Today, November 2, 2008
HIGH POINT — Natuzzi's board has approved a three-year business plan that includes opening the company's first production facility in North America.
“We expect to open a facility in North America within 15 months,” said Cary Benson, president of Natuzzi Americas. He would not specify whether the plant would be in the United States.
The business strategies, aimed at increasing sales and profit in 2009-2011, will be presented to the financial community in November. Senior management will visit U.S. and British clients and investors to explain the plan beforehand.
In a statement, Natuzzi officials said they see the challenging business environment, particularly the global financial market crisis and low consumer confidence, as an opportunity to improve results. The company said its balance sheet is sound, with minimal exposure to the banking system, which should allow it to self-finance the operational and investment projects defined in the plan.
The new strategy aims at achieving sales of 1 billion euros in 2011, with earnings before interest and taxes targeted to be about 15% of net sales. In the first half of this year, the company reported sales of 341.6 million euros ($523.4 million) and a net loss of 25.9 million euros ($39.7 million).
Natuzzi's goals include increasing sales in Europe and penetrating the emerging markets of Brazil, Russia and India, growing in Asia and continuing its recovery in North America, and supporting its brand strategy worldwide. It also aims to reduce production costs by using existing plants to serve the regions where they are located, establishing a shorter route to market with better customer service and improved supply chain efficiencies.
The company also plans to expand its retail network with a goal of almost doubling the number of stores and shops-in-shop worldwide.
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