Tempur-Pedic’s earnings jump 31% in fourth quarter
Sales up 13% as company defies industry slump
Larry Thomas -- Furniture Today, January 25, 2008
LEXINGTON, Ky. — Specialty bedding producer Tempur-Pedic said fourth-quarter sales rose 13% and earnings shot up 31% as the company continued to expand its presence on U.S. retail floors.
The growth came in the midst of a home furnishings industry sales slump that has plagued many manufacturers and retailers for months.
“The company delivered growth across all product lines both domestically and abroad,” said Thomas Bryant, president and CEO. “And we improved brand awareness, increased market share and expanded capacity by opening the world’s largest mattress factory.”
Bryant said he was especially pleased that Tempur-Pedic maintained profitability despite the costs stemming from the factory opening in Albuquerque, N.M.
Fourth quarter sales totaled $289 million, up from $256.6 million in last year’s fourth quarter.
Net income was $39.9 million or 52 cents per share. In the same period last year, the totals were $30.5 million and 36 cents per share.
The company’s U.S. mattress business recorded sales of $129.1 million, up 11.4% from $115.8 million in last year’s fourth quarter.
For the full year, worldwide sales totaled $1.11 billion, an increase of 17% from 2006.
Net income in 2007 was $141.5 million or $1.74 per share. That’s 26% ahead of 2006, when earnings were $112.3 million or $1.28 per share.
For 2008, the company is projecting net sales of $1.195 billion to $1.25 billion, an increase of 8% to 13% over 2007.
Earnings per share are projected at $2.03 to $2.20, an increase of 17% to 26% from 2007.
