Home / Knowledge / News / Textiles / Mattress & pillow sales decline at Tempur-Pedic
Mattress & pillow sales decline at Tempur-Pedic
17
Jul '09
Tempur-Pedic International Inc, the leading manufacturer, marketer and distributor of premium mattresses and pillows worldwide, announced financial results for the second quarter ended June 30, 2009. The Company also confirmed its financial guidance for 2009.

Second Quarter Financial Summary:
• Earnings per share (EPS) were $0.22 per diluted share in the second quarter of 2009 as compared to $0.27 per diluted share in the second quarter of 2008. The Company reported net income of $16.9 million for the second quarter of 2009 as compared to net income of $20.2 million in the second quarter of 2008.

• Net sales declined 22% to $185.2 million in the second quarter of 2009 from $238.7 million in the second quarter of 2008. On a constant currency basis, net sales declined 19%. Net sales in the domestic segment declined 19%, while international segment net sales declined 29%. On a constant currency basis, international segment net sales declined 19%.

• Mattress sales declined 24% globally. Mattress sales declined 20% in the domestic segment and 31% in the international segment. On a constant currency basis, international mattress sales declined 21%. Pillow sales declined 17% globally. Pillow sales declined 12% domestically and 20% internationally. On a constant currency basis, international pillow sales declined 12%.

• Gross profit margin was 46.6% as compared to 44.4% in the second quarter of 2008. The gross profit margin increased as a result of lower commodity costs, improved efficiencies in manufacturing and improved pricing, partially offset by fixed cost de-leverage related to lower production volumes.

• Operating profit margin was 15.7% as compared to 15.2% in the second quarter of 2008. The Company reduced operating expenses by $12.5 million to $57.2 million in the second quarter of 2009 from $69.7 million in the second quarter of 2008.

• Reflecting the Company's continued focus on generating cash, the Company generated $39.5 million of operating cash flow in the second quarter of 2009.

• During the quarter, the Company reduced Total debt by $31.0 million to $369.0 million and increased cash by $3.8 million to $25.0. As of June 30, 2009, the Company's ratio of Funded debt to EBITDA was 2.29 times, well within the covenant in its credit facility, which requires that this ratio not exceed 3.00 times.

Chief Executive Officer Mark Sarvary commented, "During the second quarter, our initiatives to drive sales and margins continued to show progress. Our productivity projects helped us expand gross margins with improvement compared to last year and last quarter. Our focus on cash flow continued to display the strength of our business model as we lowered debt $31 million during the quarter. We believe we are well positioned for growth when the economy recovers."

2009 Financial Guidance:
The Company confirmed its prior guidance ranges for EPS and net sales for full year 2009. The Company continues to expect EPS to range from $0.70 to $0.90 per diluted share. The Company continues to expect net sales to range from $700 million to $740 million. The Company noted its expectations are based on information available at the time of this release, and are subject to changing conditions, many of which are outside the Company's control.

Tempur-Pedic International Inc


Must ReadView All

May 31 deadline for registration of chemicals under REACH

Textiles | On 23rd May 2018

May 31 deadline for registration of chemicals under REACH

May 31 is the final deadline for companies to register all chemicals...

US cotton production projected to decline in 2018: USDA

Textiles | On 23rd May 2018

US cotton production projected to decline in 2018: USDA

US cotton production is forecast at 19.5 million bales, nearly 7 per...

Pakistan's textile exports up 8.13% in July-April FY18

Textiles | On 23rd May 2018

Pakistan's textile exports up 8.13% in July-April FY18

The value of textile and garment exports from Pakistan increased by...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search