Patrick C. Lynch, Senior Vice President and Chief Financial Officer, commented, "We are pleased to have generated $12.4 million in cash during the first quarter, which historically is a heavy cash use period for us, compared with a net decrease of $29.6 million in cash during the prior year period.
“Our sequential increase in gross margin was largely a result of improved manufacturing efficiencies and higher average sale prices, particularly in the Americas and Europe. In addition, we realized the full benefits of our fourth quarter restructuring actions, and our focus on cost reduction continued in the first quarter as we began the process of closing our Shelf facility. Combined with our previous initiatives, we will have significantly reduced our cost structure by the fourth quarter of 2012."
Mr. Hendrix concluded, "Looking ahead, we are encouraged by the positive order trend we have seen over the past nine weeks. We anticipate further improvement in gross margin through a combination of price increases, higher production volumes and better operational efficiencies, although we do expect some headwinds from higher raw material costs.
“We also will keep a tight rein on SG&A expenses, without sacrificing our planned investments in additional FLOR stores, emerging geographic markets and market segment diversification. With our continuing cost reduction efforts, the secular shift to carpet tile and our leading presence in the marketplace, we are optimistic about our prospects for the remainder of 2012."
Interface, Inc. is the world's largest manufacturer of modular carpet, which it markets under the Interface, InterfaceFLOR, FLOR, Heuga and Bentley Prince Street brands, and, through its Bentley Prince Street brand, enjoys a leading position in the designer quality segment of the broadloom carpet market.
-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)")
