Gross profit touches 36% at modular carpet maker

24 Apr '08

4 min read

These factors, combined with a currency impact, offset softer sales in the corporate office segment that we experienced mostly in Europe. Revenues were particularly strong in Asia and other emerging markets, where we continued to see growing demand for modular carpet.

Overall, we were able to expand our gross and operating profit margins, resulting in a 27% increase in operating income compared with the first quarter of 2007. Order growth also remained solid during the period, increasing 10% to $280 million compared with the first quarter last year."

Patrick C. Lynch, Senior Vice President and Chief Financial Officer, commented, "Our modular carpet business segment continued to lead the way during the first quarter, with its sales increasing 10% compared with the prior year period.

While Bentley Prince Street's sales were essentially flat year-over-year, we are encouraged by the continued growth of the modular component of this business, and its operating income improved a healthy percentage versus last year due to improved manufacturing efficiencies."

Mr. Hendrix concluded, "Over the past few years, we have taken the necessary steps to position Interface for solid performance throughout the various economic cycles. Going forward, we continue to see good potential for our business, as evidenced by a 25% increase in our backlog compared with the prior year.

Despite an uncertain economic landscape, we expect to continue benefiting from the secular trend toward modular carpet, while our successful segmentation strategy has significantly increased our prospects outside of the traditional office market.

Our geographic diversification also provides opportunities for growth going forward, especially in emerging markets where we are expanding our manufacturing and distribution capabilities. We are off to a good start in 2008 and expect continued growth as we enter a seasonally stronger time of year. Through the first three weeks of our second quarter, sales and order activity have been improving further."

The Company will host a conference call tomorrow, April 24, 2008, at 9:00 a.m. Eastern Time, to discuss its first quarter 2008 results. The conference call will be simultaneously broadcast live over the Internet.

Interface Inc

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