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Gross profit touches 36% at modular carpet maker

24
Apr '08

Interface Inc, a worldwide floorcoverings company, announced results for the first quarter ended March 30, 2008.

Sales for the first quarter of 2008 increased 7.5% to $261.7 million from sales of $243.5 million in the year ago period. Gross profit margin expanded 180 basis points to 36.0%, versus 34.2% in the first quarter last year. Operating income for the first quarter of 2008 increased 27.4% to $31.0 million, or 11.8% of sales, compared with operating income of $24.3 million, or 10.0% of sales, in the first quarter of last year.

Income from continuing operations was $14.1 million, an increase of 55.7% compared with income from continuing operations of $9.1 million in the first quarter of 2007. Net income for the 2008 first quarter was $14.1 million, or $0.23 per diluted share.

As previously announced, the Company sold its fabrics division in July 2007, and therefore the financial statements for all periods presented now reflect the fabrics division as discontinued operations. Last year, first quarter results included a loss from discontinued operations of $49.7 million, which led to a net loss of $40.6 million, or $0.66 per diluted share.

"The 2008 first quarter was the best first quarter in our history, giving us a good start to the year," said Daniel T. Hendrix, President and Chief Executive Officer.

"Sales were up nearly 8% during what historically has been the seasonally slowest quarter for our business. Our growth was driven by the market's secular shift to carpet tile and by our market segmentation strategy, which has enabled us to continue expanding our presence in education, hospitality and other non-office segments.

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