Culp's mattress fabrics business delivers solid performance
06 Sep '10
5 min read
"These results also reflect the benefits of our recent operating initiatives and the ongoing investments to develop an efficient and scalable manufacturing platform. We recently completed a capital project to expand the internal production of our knitted fabrics product line, which has been our fastest growing category.
“For fiscal 2011, we will continue to fund capital expenditures for maintenance and expansion-related projects in mattress fabrics. While we are pleased with our first quarter results, we are seeing some slowdown in industry demand as well as increased pricing pressures and higher raw material costs. Above all, we remain focused on execution for our customers with outstanding service, reliable delivery performance and consistent quality and value."
Upholstery Fabrics Segment Sales for this segment, which include both fabric and cut and sewn kits, were $25.0 million, a 30 percent increase compared with $19.2 million in the first quarter of fiscal 2010. Sales of China produced fabrics were $22.1 million in the first quarter of fiscal 2011, up 37 percent over the prior year period, while sales of U.S. produced fabrics were $2.9 million, down five percent from the first quarter of fiscal 2010.
"We are encouraged by the significant sales growth for the upholstery fabrics business," noted Saxon. "Our sales gain was primarily driven by the growth from our China operation. While most of the China produced products are being sold to our U.S. customers, we are also pleased with the increase in sales to the local China market and to international customers.
“Additionally, the broad-based sales gains among different customer segments reflect the success of our product development, sales and marketing initiatives. The response from both our existing and new customers has been very favorable, and we will continue to focus on expanding these important initiatives to drive our growth in fiscal 2011. While we are pleased with the first quarter results, we are also experiencing higher raw material costs in this segment."
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
