Culp announces revised expectations for Q2 fiscal 2011

23 Oct '10

2 min read

Culp, Inc., announced that, based on quarterly results to date and current estimates, the company expects pre-tax income to be in the range of $2.9 to $3.3 million for the second quarter of fiscal 2011. These projected results are lower than the company's previously announced expectation of $3.5 to $4.0 million in pre-tax income for the quarter. The company reported pre-tax income of $3.5 million for the second quarter of last year.

Commenting on the announcement, Frank Saxon, president and chief executive officer of Culp, Inc., said, "Our projected financial results for the second quarter reflect lower overall sales than anticipated, driven by weaker consumer demand trends for furniture and bedding.

"We anticipate overall sales will be relatively flat compared with sales for the same period last year, whereas we previously announced that overall sales were expected to be up 5 to 10 percent. We have also experienced higher raw material costs in both segments and increased pricing pressure in our mattress fabrics business."

The company expects to report financial and operating results for the second quarter ending October 31, 2010, in late November.

Culp, Inc. is one of the world's largest marketers of mattress fabrics for bedding and upholstery fabrics for furniture. The company's fabrics are used principally in the production of bedding products and residential and commercial upholstered furniture.

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