Tempur-Pedic 4Q profits jump 59%
Larry Thomas -- Furniture Today, February 10, 2011
LEXINGTON, Ky. — Top 10 bedding producer Tempur-Pedic said fourth-quarter profits were 59% ahead of the fourth quarter of 2009 as the company benefited from improved manufacturing efficiencies and increased sales of higher margin products.
The company, which makes memory foam mattresses and pillows, recorded fourth-quarter net income of $46.3 million or 66 cents per share. That compares with $29.1 million or 38 cents per share in the 2009 quarter.
Worldwide sales in the most recent quarter were $292.7 million, up 9.6% from a year ago.
The company's North American mattress business shot up 31.8% with sales of $131.2 million in the quarter.
For the full year, worldwide sales rose 33% to $1.105 billion, while profits climbed nearly 85% to $157.1 million or $2.16 per share.
The 2010 sales increase broke a two-year string of sales decreases and essentially brought the company's top line back to its 2007 level.
"In 2010 we delivered strong financial results and at the same time executed well on our strategic growth initiatives," said Mark Sarvary, CEO. "We strengthened the product range and greatly improved how well consumers understand and appreciate the unique benefits of Tempur- Pedic."
Gross margin for the full year was 50.2%, a jump of 2.8 percentage points from 2009.
For 2011, Tempur-Pedic is projecting sales of $1.23 billion to $1.28 billion. Earnings per share are projected to be $2.60 to $2.75.
In addition, the company said its board of directors authorized up to $200 million in share repurchases. Last year, the company spent about $250 million to buy back 8.5 million shares of its common stock.
Tempur-Pedic | |||
Quarter ended 12/31 | 2010 | 2009 | Change |
Sales | $292,703,000 | $244,794,000 | 19.6% |
Operating income | 71,608,000 | 47,226,000 | 51.6% |
Net income | 46,292,000 | 29,114,000 | 59.0% |
Year ended 12/31 | 2010 | 2009 | Change |
Sales | $1,105,421,000 | $831,156,000 | 33.0% |
Operating income | 245,902,000 | 144,945,000 | 69.7% |
Net income | 157,145,000 | 84,993,000 | 84.9% |
Earnings per share | 2.16 | 1.12 | 92.9% |
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Tempur-Pedic profits jump 59% in fourth quarter
Jan 21, 2011
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