Culp profits nearly double as sales rise 22.9%
Upholstery fabric leads way in fiscal first quarter
Larry Thomas -- Furniture Today, September 1, 2010
HIGH POINT — Fabric producer Culp said its profits nearly doubled in the quarter ended Aug. 1 as sales climbed 22.9%.
The company, a supplier of upholstery fabric and mattress ticking, said the largest growth came in sales of upholstery fabric produced at its China operation.
"Our stronger sales for the first quarter of fiscal 2011 reflect better consumer demand trends than a year ago, particularly in the first two months of the quarter, as well as success from our sales and marketing initiatives," said Frank Saxon, president and CEO. "Our improved profitability reflects the higher sales volumes, as well as the benefits of a leaner and more cost-efficient operating platform."
Total sales for the quarter were $55.9 million, compared with $45.5 million in the same quarter a year ago.
Net income was $3.75 million or 28 cents per share, up from $1.88 million or 13 cents per share in last year's first fiscal quarter.
The upholstery fabrics segment recorded sales of $25 million - 30% above the same quarter last year. Of that total, $22.1 million came from the Chinese operation, a 37% jump over the same period last year.
"We are encouraged by the significant sales growth for the upholstery fabrics business," said Saxon. "While most of the China-produced products are being sold to our U.S. customers, we are also pleased with the increase in sales to the local China market and to international customers."
Mattress ticking sales for the quarter totaled $30.9 million, an 18% increase from the same period last year.
The company is projecting an overall sales increase of 5% to 10% in the second quarter. Saxon said upholstery fabric sales should rise 10% to 15%, while mattress ticking sales are expected to range from flat to a 5% increase.
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Culp 1Q sales jump 22.9% as earnings nearly double
Sep 21, 2010
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