Interviews
News Flash
Mattress fabric sales flat for Q2 - Culp Inc
30 Nov '10
5 min read
Commenting on the results, Frank Saxon, president and chief executive officer of Culp, Inc., said, "While second quarter results reflect a much weaker U.S. retail environment, our year to date sales, profitability and return on capital are up from the prior year period. The uncertainties surrounding the economic outlook, a continued weak housing market, and high unemployment are all keeping U.S. consumers on the sidelines for now. However, we have continued to perform well during this period and we have strengthened our business models in both of our businesses.
“Additionally, we are pursuing international sales and marketing initiatives in our upholstery fabrics business, especially in Europe and China. We are excited about the global appeal of our products and the opportunity to reach new customers. Our strong financial resources are enabling us to pursue a more active growth strategy during these challenging times."
Mattress Fabrics Segment
Mattress fabric sales for the second quarter were $28.3 million, relatively flat compared with $28.2 million for the second quarter of fiscal 2010.
"Our mattress fabrics business delivered a consistent performance, in spite of the weaker demand in the bedding industry," said Saxon. "While sales were about the same level as the second quarter last year, these results reflect the planned discontinuation of a product line since a year ago. On a comparable basis, we are pleased with the favorable sales trends in our continuing product lines, which were up seven percent. We have benefited from our recent investments and initiatives to enhance our operations and develop an efficient and scalable manufacturing platform. However, our profitability for the second quarter was affected by increased competitive pricing pressures and higher raw material costs.
"We have recently completed a capital project to expand the internal production of our knitted fabrics product line, our fastest growing category. Including the second quarter capital expenditures, we have completed a multi-year expansion in our mattress fabrics business with a total investment of nearly $45 million, which included $25 million in capital expenditures and $20 million for two successful acquisitions. With these investments, Culp is well positioned with a large and modern, vertically integrated manufacturing platform in the two major product categories of the mattress fabrics industry.
“We have substantially improved upon our supply logistics from pattern inception to fabric delivery. With the completion of these expansions, our capital spending in mattress fabrics for the foreseeable future will be substantially lower. Above all, we remain focused on execution for our customers with outstanding service, reliable delivery performance and consistent quality and value," added Saxon.
Click here for more details
“Additionally, we are pursuing international sales and marketing initiatives in our upholstery fabrics business, especially in Europe and China. We are excited about the global appeal of our products and the opportunity to reach new customers. Our strong financial resources are enabling us to pursue a more active growth strategy during these challenging times."
Mattress Fabrics Segment
Mattress fabric sales for the second quarter were $28.3 million, relatively flat compared with $28.2 million for the second quarter of fiscal 2010.
"Our mattress fabrics business delivered a consistent performance, in spite of the weaker demand in the bedding industry," said Saxon. "While sales were about the same level as the second quarter last year, these results reflect the planned discontinuation of a product line since a year ago. On a comparable basis, we are pleased with the favorable sales trends in our continuing product lines, which were up seven percent. We have benefited from our recent investments and initiatives to enhance our operations and develop an efficient and scalable manufacturing platform. However, our profitability for the second quarter was affected by increased competitive pricing pressures and higher raw material costs.
"We have recently completed a capital project to expand the internal production of our knitted fabrics product line, our fastest growing category. Including the second quarter capital expenditures, we have completed a multi-year expansion in our mattress fabrics business with a total investment of nearly $45 million, which included $25 million in capital expenditures and $20 million for two successful acquisitions. With these investments, Culp is well positioned with a large and modern, vertically integrated manufacturing platform in the two major product categories of the mattress fabrics industry.
“We have substantially improved upon our supply logistics from pattern inception to fabric delivery. With the completion of these expansions, our capital spending in mattress fabrics for the foreseeable future will be substantially lower. Above all, we remain focused on execution for our customers with outstanding service, reliable delivery performance and consistent quality and value," added Saxon.
Click here for more details
Culp Inc
Popular News
Leave your Comments
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
