Natuzzi's sales slide 2.4% in Q4
Larry Thomas -- Furniture Today, April 1, 2013
SANTERAMO IN COLLE, Italy - Despite a 17.4% jump in sales in the Americas, leather upholstery major Natuzzi reported a fourth quarter net loss of $15.7 million as worldwide sales fell 2.4%.
The company said its gains in the Americas were more than offset by weak sales in Europe, where several countries are still mired in a recession. Sales in its home country of Italy were off 13.6% and sales in the remainder of Europe fell 18.1%.
Worldwide sales for the fourth quarter totaled $164.2 million, down from $168.1 million in the previous year's fourth quarter.
Sales in the Americas totaled 44.9 million euros, or about $58.2 million. That's up from 38.2 million euros, or about $49.6 million, in the fourth quarter of 2011.
The most recent quarter's net loss, which equals 29 cents per share, compares with a loss of $20.7 million or 40 cents per share in the fourth quarter of 2011.
Results for the 2012 calendar year were similar to the fourth quarter. Worldwide sales fell 3.6% to $602.9 million, but sales in the Americas rose 18.3% to 169.8 million euros, or about $218.3 million.
The company, which typically doesn't break out sales results by individual countries in North America and South America, noted that sales in the U.S. were up 14.7% in 2012, while Canada registered a gain of 26.5% and sales in Brazil jumped more than 80%.
The 2012 net loss totaled $33.6 million or 61 cents per share. That was up from a loss of $25.2 million or 50 cents per share in 2011.
"The general recession climate we've been experiencing, especially in those markets that are important for us, such as Europe, does affect disposable income and contributes to a change in the consumers' needs, since nowadays they tend to prefer products within the medium to low end of the market," Chairman and CEO Pasquale Natuzzi said in a statement accompanying the earnings announcement.
He said sales of the company's upper-end Natuzzi Italia product line were especially hard hit in 2012.
"The overall performance in 2012 was especially affected by the persisting poor trend in sales from Europe, (which is) suffering from a weak condition of private consumptions, further burdened by austerity driven policies in place in some countries, but also by the extension of the slowdown in some emerging economies," Natuzzi added.
This year, he said the company is focusing on operational improvements, and is reviewing its sales and marketing strategies in fast-growing markets.
|Earnings per share are fully diluted, and all figures in parentheses are losses or declines.|
Quarter ended 12/31
Earnings per share
Year ended 12/31
Earnings per share
(a) In euros