Culp's mattress fabrics business delivers solid performance

30 Aug '11

4 min read

Overview
For the quarter ended July 31, 2011, net sales were $60.3 million, a 7.8 percent increase compared with $55.9 million a year ago. The company reported net income of $1.8 million, or $0.14 per diluted share, for the first quarter of fiscal 2012, compared with net income of $3.7 million, or $0.28 per diluted share, for the first quarter of fiscal 2011. The current year income tax rate was significantly higher primarily due to non-cash U.S. tax expense that was not in the prior year quarter. On a pre-tax basis, the company reported income of $3.0 million compared with pre-tax income of $4.3 million for the first quarter of fiscal 2011.

Commenting on the results, Saxon said, "We are pleased with our year over year sales improvement for the first quarter of fiscal 2012, especially in the face of an uncertain economy. As a result of our sales and marketing initiatives, we expect this sales momentum to continue into the second quarter and full year compared with the same periods of fiscal 2011. Both of our businesses continued to deliver solid results, even though profitability is down somewhat from the same quarter of last year primarily due to higher raw material costs in mattress fabrics and lower than expected results in our U.S. upholstery fabrics operation. We announced price increases in both segments that are expected to absorb some of these additional costs going forward. Our financial position remains strong and supports our ability to invest in growing our businesses in fiscal 2012. Overall, we have a solid competitive position in both mattress fabrics and upholstery fabrics, and, as always, our primary focus is on outstanding service for our customers as a financially stable and trusted supplier."

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