Tempur-Pedic 3Q Income Tops $44 Million

October 19, 2010  by in UnCategorized   

By Home Furnishings Business in Bedding on October 20, 2010 Bedding supplier Tempur-Pedic International (NYSE: TPX) reported net income of $44.2 million for the third quarter ended Sept. 30 compared to net income of $25.7 million during the same quarter last year.

Sales for the quarter climbed 32 percent to $295.8 million, compared to $224.1 million in the third quarter last year. The company said mattress sales increased 46 percent in its North American business and 3 percent internationally.

"We are pleased with the market share gains and the sales and earnings growth we have achieved in the third quarter," said Mark Sarvary, CEO. "Throughout 2010 we have grown sales and profit while improving our competitive position€”strengthening our product line, improving the effectiveness of our marketing and increasing our margins. We continue to project considerable potential for growth for Tempur-Pedic over the coming years, and over the coming quarters we will invest to capitalize on this opportunity."

During the third quarter, the company purchased 1.8 million shares of its common stock at an average price of $27.57 for a total cost of $50 million. During the first three quarters of 2010, Tempur-Pedic purchased 8.5 million shares of its common stock at an average price of $29.41 for a total cost of $250 million.

The company's board of directors had expanded the existing share repurchase program by $50 million for a total authorization of up to $150  million. Reflecting share repurchases made during the third quarter, the company currently has $100 million remaining under this authorization.

Tempur-Pedic's complete earnings release can be found on its Web site.