Natuzzi posts $11M net loss
Larry Thomas -- Furniture Today, June 4, 2012
SANTERAMO IN COLLE, Italy - Despite a 27% jump in sales in North and South America, leather upholstery producer Natuzzi recorded a first-quarter net loss of $11 million - more than double its loss in last year's first quarter.
Worldwide sales fell 8.8% due largely to reduced economic activity in Europe resulting from the debt crisis on the continent.
The Italian company, which reports key financial figures in U.S. dollars, said worldwide sales totaled $144.8 million, down from $158.7 million in the same quarter last year.
Despite the increase in North and South America, sales in Europe (excluding Italy) fell 22.6% and sales in its home country were off 32.2%.
Sales for High Point-based Natuzzi Americas, which covers the North and South American markets (except for Brazil), totaled 34.8 million euros, or about $45.6 million. That's up from 27.4 million euros, or about $35.9 million, in last year's first quarter.
The company's net loss, which equals 2 cents per share, compares with a loss of $3.9 million or 1 cent per share in the same period last year.
"The difficult economic and market conditions still persist and have been further worsening over the past few months, thus negatively affecting the consumers' disposable income and, most of all, fostering a generalized lack of confidence and worries in the future, particularly evident in the European Union countries," said Pasquale Natuzzi, chairman and CEO.
"But the overall picture is not entirely negative," he continued. "The reduction in sales, particularly evident in Europe, was partially offset by a considerable increase in turnover from the Americas, where the company started to recover market share."
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
Quarter ended 3/31
Earnings per share
a) All figures in Euros.