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Culp's mattress fabric sales jump 26% in 4Q

Consumer demand better than expected

Gary Evans -- Furniture Today, May 19, 2010

HIGH POINT — Upholstery and upholstery fabric maker Culp has revised expectations upward for the fourth quarter ended May 2, saying mattress fabric sales were better than expected because of consumer demand.

Mattress segment sales are expected to be up 26% over the fourth quarter a year earlier, and sales for upholstery fabrics are expected to rise by 13% over the prior year period. The mattress ticking number is sharply higher than a previous forecast.

The company said it expects pretax income for the fourth quarter to be in the range of $4.7 million to $5.1 million. Previously, the company had forecast pretax earnings of $3.5 to $4.2 million.

"Our projected financial results for the fourth quarter reflect better sales growth than anticipated in our mattress fabrics business, driven by significantly improved consumer demand in the bedding industry," said Frank Saxon, president and CEO. "While we continued to see favorable growth trends in our upholstery fabrics business, we believe consumer demand for furniture was not as strong as for bedding during the quarter.

"Overall, we are very pleased with the progress we made in the fourth quarter and in fiscal 2010," he added. "Looking ahead, although we are optimistic about the outlook for the bedding and furniture industries, we are beginning to experience higher raw material costs in both segments and increased pricing pressure in our mattress fabrics business."

The company expects to report results for the fourth quarter and fiscal 2010 in mid-June.

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