Interface makes substantial progress during Q2

30 Jul '09

5 min read

For the first six months of 2009, sales were $410.6 million, compared with $556.7 million for the same period a year ago, a decrease of 26.2%. Approximately 8% of the sales decline was related to fluctuations in currency exchange rates relative to the first six months of last year. Excluding the 2009 second quarter items described above, as well as a pre-tax restructuring charge of $5.7 million in the first quarter of 2009 as previously announced, operating income and income from continuing operations for the 2009 six-month period were $25.6 million (or 6.2% of sales) and $5.9 million (or $0.09 per diluted share), respectively.

These figures compare with operating income and income from continuing operations of $64.4 million (or 11.6% of sales) and $30.6 million (or $0.47 per diluted share), respectively, in the first six months of 2008. Including all items, operating income and income from continuing operations for the 2009 six-month period were $23.9 million (or 5.8% of sales) and $0.4 million (or $0.00 per diluted share), respectively. Net loss attributable to Interface, Inc. in the first six months of 2009 was $0.5 million, or $0.01 per diluted share, compared with net income attributable to Interface, Inc. in the year-ago period of $30.0 million, or $0.47 per diluted share.

Mr. Hendrix concluded, "Our market diversification strategy and the operational initiatives that we implemented during the first half of the year have enabled us to deliver solid second quarter results. The secular shift toward carpet tile is continuing, even through the severe downturn in the global office market. We believe that by taking the appropriate actions to streamline our operations at the right time, we have protected the profitability of our business.

Although we saw a recovery in orders during the quarter and are encouraged by sequential monthly sales trends, we remain cautious about the operating environment through the second half of the year, with market conditions in Europe and many emerging markets showing continued signs of weakness. Despite this, we are pleased with our ability to execute on our initiatives to realize operating efficiencies across the business, and we plan to continue to focus on managing our costs and generating strong cash flow, while at the same time enhancing our position in the marketplace through further investments in market diversification."

Interface Inc

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