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Culp announces results for Q2 fiscal 2009
06 Dec '08
5 min read
"In this challenging environment, we are focused on strengthening our business models in both divisions to ensure we have operating platforms and cost structures that are agile and commensurate with expected demand levels. At the same time, we believe we are enhancing our competitive position as the leader in mattress fabrics and upholstery fabrics. In today's environment, stability is critical and Culp continues to execute extremely well for our customers in terms of the reliability, value, innovation and service commitment we provide."
Mattress Fabrics Segment
Mattress fabric (known as mattress ticking) sales for the second quarter were $28.0 million, a 22 percent decline compared with $36.0 million for the second quarter of fiscal 2008. On a unit volume basis, total yards sold decreased by 25 percent compared with the second quarter of fiscal 2008. The average selling price of $2.47 per yard for the second quarter of fiscal 2009 was approximately three percent higher than the same period a year ago due to product mix changes. Operating income for this segment was $3.3 million, or 11.6 percent of sales, compared with $3.9 million, or 10.8 percent of sales, for the prior-year period.
"We were pleased with the profitability in mattress fabrics in spite of a larger-than-expected decline in sales for the second quarter," said Saxon. "The decline in sales reflects the extremely weak retail environment for the mattress industry as consumers are holding off on discretionary spending. In light of this environment, we are carefully managing our inventories and taking the necessary steps to reduce our operating costs.
"While market conditions remain very challenging, Culp continues to enjoy the leadership position in mattress fabrics," added Saxon. "The acquisition of the knitted mattress fabrics operation of Bodet & Horst USA, or B&H, completed during the second quarter, has gone well. We believe we have enhanced Culp's excellent service platform with improved supply logistics from pattern inception to fabric delivery, allowing accelerated responsiveness and greater stability. With this acquisition, along with our woven fabrics expansion and recent finishing enhancements, Culp is now positioned with a large and modern, vertically integrated manufacturing platform in all major product categories of the mattress fabrics industry.”
“This platform provides us with a strong competitive advantage as we aggressively pursue new business opportunities, and positions us very well when the industry eventually recovers. Our strategic focus in mattress fabrics continues to be on providing our customers with outstanding delivery performance, quality and innovative fabrics."
Click here to read more details:
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.
Mattress Fabrics Segment
Mattress fabric (known as mattress ticking) sales for the second quarter were $28.0 million, a 22 percent decline compared with $36.0 million for the second quarter of fiscal 2008. On a unit volume basis, total yards sold decreased by 25 percent compared with the second quarter of fiscal 2008. The average selling price of $2.47 per yard for the second quarter of fiscal 2009 was approximately three percent higher than the same period a year ago due to product mix changes. Operating income for this segment was $3.3 million, or 11.6 percent of sales, compared with $3.9 million, or 10.8 percent of sales, for the prior-year period.
"We were pleased with the profitability in mattress fabrics in spite of a larger-than-expected decline in sales for the second quarter," said Saxon. "The decline in sales reflects the extremely weak retail environment for the mattress industry as consumers are holding off on discretionary spending. In light of this environment, we are carefully managing our inventories and taking the necessary steps to reduce our operating costs.
"While market conditions remain very challenging, Culp continues to enjoy the leadership position in mattress fabrics," added Saxon. "The acquisition of the knitted mattress fabrics operation of Bodet & Horst USA, or B&H, completed during the second quarter, has gone well. We believe we have enhanced Culp's excellent service platform with improved supply logistics from pattern inception to fabric delivery, allowing accelerated responsiveness and greater stability. With this acquisition, along with our woven fabrics expansion and recent finishing enhancements, Culp is now positioned with a large and modern, vertically integrated manufacturing platform in all major product categories of the mattress fabrics industry.”
“This platform provides us with a strong competitive advantage as we aggressively pursue new business opportunities, and positions us very well when the industry eventually recovers. Our strategic focus in mattress fabrics continues to be on providing our customers with outstanding delivery performance, quality and innovative fabrics."
Click here to read more details:
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.
Culp Inc
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