Natuzzi Posts 3M Euro Loss for 1Q

May 22, 2011  by in UnCategorized   

By Home Furnishings Business in Leather Upholstery on May 23, 2011 Italian upholstery producer Natuzzi (NYSE: NTZ) reported a net loss of 3 million Euro in the the first quarter ended March 31, compared to a net loss of 1.3 million Euro in the first quarter of last year.

Net sales for the quarter were 121 million Euro, a 4.3 percent decline compared to net sales of 126.5 million Euro in the first quarter of last year. Just over 26 percent of the sales came from the Americas; 49.5 percent from Europe (excluding Italy); 14.1 percent from Italy and the balance from the rest of the world.

"In the first quarter of 2011, we recorded a slight decrease in sales as a consequence of the U.S. market, which suffered from the decline in production in China due to the shift of production facilities," said Pasquale Natuzzi, chairman and CEO. "In recent weeks the level of production capacity has already been fully restored, which is necessary in order to ensure an adequate level of service which is fundamental in a market like the U.S., already characterized by weak demand for home decor products. We are aware of the difficulties we are still facing, given the uncertain economic situation, and for this reason we continue to work on simplification and integration of brands, markets, distribution channels and facilities to better serve customers that represent a core value for our company. The strong financial position enables us to give continuity to the specific investments in terms of product and process innovation, development and valorization of the brand, expansion within the emerging markets like India, China and Brazil, while maintaining our presence in our historical markets."

The entire earnings release can be found online.