Culp Revises Fiscal 2Q Outlook

October 21, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on October 22, 2010

Fabric and ticking supplier Culp Inc. (NYSE: CFI), has revised its outlook for its second fiscal quarter of 2011, which ends Oct. 31.

Culp now anticipates pre-tax income for the period to range from $2.9 million to $3.3 million, lower than the company's previously announced expectation of $3.5 million to $4 million. Culp reported pre-tax income of $3.5 million for the second quarter of last year.

Commenting on the announcement, Frank Saxon, president and chief executive officer of Culp, Inc., said, "Our projected financial results for the second quarter reflect lower overall sales than anticipated, driven by weaker consumer demand trends for furniture and bedding," said President and CEO Frank Saxon. "We anticipate overall sales will be relatively flat compared with sales for the same period last year, whereas we previously announced that overall sales were expected to be up 5 to 10 percent. We have also experienced higher raw material costs in both segments and increased pricing pressure in our mattress fabrics business."

The company expects to report financial and operating results for its second fiscal quarter in late November.

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.