Foamex earns profit as 3Q sales fall 19.4%

Automotive segment sales plummet 31%

Larry Thomas -- Furniture Today, November 10, 2008

MEDIA, Pa. — Foamex International, a supplier of polyurethane foam for furniture and bedding, said third-quarter sales tumbled 19.4% but the company turned a profit of $2.38 million.

Foamex said sales were weak in all of its business segments, although its automotive business had by far the largest decline - 31% drop to $90.5 million.

Sales of foam products, which include furniture and bedding but not its carpet cushioning business, fell 8% to $98.9 million.

"We have consolidated our core businesses, improving our economies of scale and operating efficiencies," said Jack Johnson, president and CEO. "(And) we continue to invest in our innovative technologies, new product development and new market opportunities."

Sales for the quarter ended Sept. 28 were $234.3 million, compared with $290.8 million in last year's third quarter.

The third-quarter profit, which equals 1 cent per share, compares with a net loss of
$593,000 or 3 cents per share in the third quarter of 2007.

For the nine months ended Sept. 28, sales were $716.5 million, a 20.9% drop from sales of $905.5 million in the first nine months of last year.

Foamex recorded a nine-month net loss of $30.7 million or 33 cents per share. That compares with a loss of $11.1 million or 52 cents per share in the first nine months of 2007.