Home / Knowledge / News / Textiles / Culp sees strong performance for the third quarter

Culp sees strong performance for the third quarter

04
Mar '10
Culp Inc reported financial and operating results for the third quarter ended January 31, 2010.

Highlights for the third quarter of fiscal 2010 include the following:

• Net sales were $54.0 million, up 21 percent from the third quarter of last year, with mattress fabric segment sales up seven percent and upholstery fabrics segment sales up 39 percent. This is the company's first overall sales gain in two years and the first sales gain in upholstery fabrics in three years.
• Pre-tax income was $3.8 million, or 7.1 percent of net sales, compared with $17,000 in the prior year period.
• Net income was $3.0 million, or $0.23 per diluted share, the highest in almost six years. These results compare with a net loss of ($450,000), or ($0.04) per share, in the prior year quarter.
• The mattress fabrics segment had another strong operating performance for the quarter with solid sales and profitability.
• The upholstery fabrics segment showed substantial profit improvement for the quarter compared with the previous year period and reported the highest quarterly profit in over 5 years.
• The company's financial position remains very solid at quarter end, with cash and cash equivalents of $19.0 million exceeding total debt of $16.4 million.
• The projection for the fourth quarter of fiscal 2010 is for overall sales to increase approximately 12 to 16 percent over the prior year period. Mattress fabric sales are expected to be up by approximately 10 to 14 percent and upholstery fabrics sales up approximately 13 to 17 percent compared with the prior year. Pre-tax income for the fourth quarter of fiscal 2010 is expected to be in the range of $3.5 to $4.2 million.

Overview

For the three months ended January 31, 2010, net sales were $54.0 million, a 21 percent increase compared with $44.6 million a year ago. The company reported net income of $3.0 million, or $0.23 per diluted share, for the third quarter of fiscal 2010, compared with a net loss of ($450,000), or ($0.04) per share, for the third quarter of fiscal 2009. The results for the third quarter of fiscal 2009 included restructuring and related pre-tax charges of approximately $777,000.

Frank Saxon, chief executive officer of Culp, Inc., said, "We are pleased with Culp's strong performance for the third quarter. We achieved a 21 percent gain in overall sales from the third quarter of last year, marking the first year-over-year sales gain for the company in two years. We are encouraged that the consumer appears to be slowly returning to the marketplace. Our mattress fabrics business has continued to perform well with solid sales and profitability. During the third quarter, we have seen a significant improvement in our upholstery fabrics performance primarily due to a better macro economic environment and favorable results from our sales and marketing initiatives. We are also realizing the benefits of a lean and agileoperating platform in both business segments, as well as recent capital expenditures in our mattress fabrics business. We have established a strong competitive position in both businesses. Culp represents a stable and reliable supplier in today's market with a proven ability to execute. Our strong financial position is another key advantage in these uncertain economic times and provides us with greater operating flexibility going forward."

Click here for more details.

Culp Inc


Must ReadView All

Pic: Shutterstock

Textiles | On 13th May 2021

UK GDP contracted 1.5% in Q1: ONS

The gross domestic product (GDP) of UK is estimated to have...

Pic: Shutterstock

Apparel/Garments | On 13th May 2021

Vietnamese garment manufacturers must boost production: Report

Garment manufacturers in Vietnam need to boost their production...

Pic: The Resilience Fund for Women in Global Value Chains

Apparel/Garments | On 13th May 2021

New fund launched to support women in global value chains

A first-of-its-kind collaborative funding initiative, The Resilience...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry craft and utility

Textile Industry, Head honchos

Textile Industry
Head honchos

Estimate loss of $8-$10 billion in turnover

Textile Industry, Head honchos

Textile Industry
Head honchos

Money never disappears-it just finds new opportunities

Rishav Bajoria & Subham Sengupta,

Rishav Bajoria & Subham Sengupta

Launched in October 2020, the Gumti app could not have come at a more...

Harleen Kaur,

Harleen Kaur

Established in 2017 and headquartered New York, the label Harleen Kaur...

Mumin Can Eker,

Mumin Can Eker

Maseksport Inc is a readymade garment exporter. Founded in Izmir in 1989,...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Shlomzion Chen, Seevix

Shlomzion Chen
Seevix

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

Brad Holschuh, Wearable Technology Lab, University of Minnesota

Brad Holschuh
Wearable Technology Lab, University of Minnesota

A new study led by researchers at the University of Minnesota's Design of...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah & Sandeep is a luxury menswear label...

Vidur Adlakha & Riccardo Bennidini, La Fuori

Vidur Adlakha & Riccardo Bennidini
La Fuori

With an active presence in US, Italy and India, clothing brand La Fuori...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search