Home / Knowledge / News / Textiles / Interface biz in Europe continues to struggle with poor economy
Interface biz in Europe continues to struggle with poor economy
02
Nov '09
Interface, Inc. announced results for the third quarter ended October 4, 2009.

Sales for the third quarter of 2009 were $218.4 million, compared with sales of $278.4 million in the third quarter of 2008, a decline of 21.6%. Approximately 3% of the sales decline was related to fluctuations in currency exchange rates relative to the year ago period. On a sequential basis, sales increased 3.3% over sales of $211.3 million in the second quarter of 2009. Operating income for the 2009 third quarter was $18.9 million, or 8.7% of sales, compared with operating income of $31.0 million, or 11.1% of sales, in the third quarter of last year. Operating income improved 13.0% over second quarter 2009 adjusted operating income of $16.8 million (see table below), or 8.0% of sales. Unadjusted, operating income in the second quarter of 2009 was $20.9 million, or 9.9% of sales.

Net income attributable to Interface, Inc. for the 2009 third quarter was $5.5 million, or $0.09 per diluted share, compared with $8.4 million, or $0.13 per diluted share, in the year ago period. Included in the Company's results for the third quarter of 2008 was a previously announced after-tax loss from discontinued operations of $5.2 million, or $0.08 per diluted share.

"We saw steady sequential improvement in our business in the third quarter despite the challenging market conditions," said Daniel T. Hendrix, President and Chief Executive Officer. "Demand for modular carpet in the education, retail and government sectors held up well, offsetting in part the continuing softness in the corporate office segment. Geographically, our business in the Americas has been remarkably resilient, due primarily to our focus on non-office segments. Our business in Europe continued to struggle with the poor economy, but in an encouraging sign orders exceeded sales for the quarter. Asia-Pacific remains tepid overall, as multinational corporate customers have not yet returned to the market. However, Australia has been turning around and we're beginning to see a firming pipeline of orders in China. While the global economic environment continues to be difficult, we feel we've made the appropriate restructuring decisions and investments in our business, and continue to gain share as a leader in the carpet tile market."

Patrick C. Lynch, Senior Vice President and Chief Financial Officer, commented, "We've successfully realigned our cost structure to match demand and strengthened our balance sheet to maintain our competitive position through this market cycle. On a sequential basis, our gross margin expanded almost 50 basis points from 2009 second quarter levels, reflecting the leverage built into our operating model. Our commitment to prudent cost management and capital allocation resulted in strong cash flow generation, and we ended the quarter with $106 million in cash and equivalents on hand."

For the first nine months of 2009, sales were $629.0 million, compared with $835.2 million for the same period a year ago, a decrease of 24.7%. Approximately 4% of the sales decline was related to fluctuations in currency exchange rates relative to the first nine months of last year. Operating income for the 2009 nine-month period was $42.9 million, compared with operating income of $95.4 million in the 2008 nine-month period. Income from continuing operations was $6.1 million, or $0.09 per diluted share, in the 2009 nine-month period, compared with income from continuing operations of $44.4 million, or $0.69 per diluted share, in the same period a year ago. Net income attributable to Interface, Inc. was $5.0 million, or $0.08 per diluted share, in the first nine months of 2009, compared with $38.4 million, or $0.61 per diluted share, for the first nine months of 2008. The Company's results for the first nine months of 2009 included the following items:


Must ReadView All

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Strong exports, consumption fuel growth in Asia: ADB

Textiles | On 16th Dec 2017

Strong exports, consumption fuel growth in Asia: ADB

Economic expansion in developing Asia is likely to accelerate to 6...

Nomura  foresees 7.5% GDP growth for India in 2018

Textiles | On 16th Dec 2017

Nomura foresees 7.5% GDP growth for India in 2018

India's economy is on the cusp of a cyclical recovery and will...

Interviews View All

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Ravindra Jain, Ashish Baid

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

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search