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Culp Upholstery fabrics results shows substantial turnaround in Q3
04 Mar '09
5 min read
“Considering the challenging environment, we have been very focused on our working capital management and, as a result, we generated almost $8 million in cash flow from operations in the third quarter, bringing the year to date total to almost $15 million. Our financial position has greatly improved this quarter and we believe we have a strong competitive position in both mattress fabrics and upholstery fabrics. More importantly, Culp continues to represent a stable and reliable supplier for our customers.”
Mattress Fabrics Segment:
Mattress fabric sales for the third quarter were $25.2 million, an 18 percent decline compared with $30.9 million for the third quarter of fiscal 2008. Mattress fabric sales represented 57 percent of total company sales for the quarter, compared with 51 percent a year ago. On a unit volume basis, total yards sold decreased by 20 percent compared with the third quarter of fiscal 2008.
The average selling price of $2.46 per yard for the third quarter of fiscal 2009 was slightly higher than $2.42 per yard for same period a year ago, reflecting a shift in product mix toward more knitted and other specialty fabrics. Operating income for this segment was $2.2 million, or 8.9 percent of sales, compared with $2.6 million, or 8.5 percent of sales, for the prior-year period.
“The mattress fabrics business had a solid quarter as bedding products continued to outperform other durable consumer product categories in this difficult business environment,” said Saxon. The mattress business is driven much more by replacement purchases and consumer need, and is not closely related to housing demand, which is the primary driver of our upholstery fabrics business.
Our mattress fabrics operations are running well as we have now successfully completed the integration of the knitted mattress fabrics operation of Bodet & Horst USA, or B&H, and are beginning to realize the incremental value of this $11.0 million investment, made in August 2008.
This acquisition has significantly enhanced our strong service platform for our customers. Earlier in this fiscal year, we also completed a $5.0 million capital project to significantly strengthen our woven mattress fabrics manufacturing operations and provide further reactive capacity for servicing our customers.
With these investments in place and contributing, we are well positioned with a large and modern, vertically integrated manufacturing platform in the major product categories of the mattress fabrics industry. We believe we have a solid leadership position in this business, and our strategic focus continues to be providing our customers with outstanding delivery performance, quality, innovation and value.”
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Mattress Fabrics Segment:
Mattress fabric sales for the third quarter were $25.2 million, an 18 percent decline compared with $30.9 million for the third quarter of fiscal 2008. Mattress fabric sales represented 57 percent of total company sales for the quarter, compared with 51 percent a year ago. On a unit volume basis, total yards sold decreased by 20 percent compared with the third quarter of fiscal 2008.
The average selling price of $2.46 per yard for the third quarter of fiscal 2009 was slightly higher than $2.42 per yard for same period a year ago, reflecting a shift in product mix toward more knitted and other specialty fabrics. Operating income for this segment was $2.2 million, or 8.9 percent of sales, compared with $2.6 million, or 8.5 percent of sales, for the prior-year period.
“The mattress fabrics business had a solid quarter as bedding products continued to outperform other durable consumer product categories in this difficult business environment,” said Saxon. The mattress business is driven much more by replacement purchases and consumer need, and is not closely related to housing demand, which is the primary driver of our upholstery fabrics business.
Our mattress fabrics operations are running well as we have now successfully completed the integration of the knitted mattress fabrics operation of Bodet & Horst USA, or B&H, and are beginning to realize the incremental value of this $11.0 million investment, made in August 2008.
This acquisition has significantly enhanced our strong service platform for our customers. Earlier in this fiscal year, we also completed a $5.0 million capital project to significantly strengthen our woven mattress fabrics manufacturing operations and provide further reactive capacity for servicing our customers.
With these investments in place and contributing, we are well positioned with a large and modern, vertically integrated manufacturing platform in the major product categories of the mattress fabrics industry. We believe we have a solid leadership position in this business, and our strategic focus continues to be providing our customers with outstanding delivery performance, quality, innovation and value.”
Click here to view more:
Culp Inc
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