Culp Q1 Sales up 7.8%

August 29, 2011  by in UnCategorized   

By Home Furnishings Business in Financial Reports on August 30, 2011

Fabric vendor Culp Inc. (NYSE: CFI) reported fiscal first-quarter 2012 sales of $60.3 million, a 7.8 percent increase over the prior-year period.

Net income for the period ended July 31 of $1.8 million fell from $3.7 million in 2011's fiscal first quarter. First-quarter mattress fabrics segment sales rose 4 percent, and upholstery fabric segment sales rose 12.4 percent over the same period a year ago.

"We are pleased with our year over year sales improvement for the first quarter of fiscal 2012, especially in the face of an uncertain economy," said Frank Saxon, president and CEO of High Point-based Culp. "As a result of our sales and marketing initiatives, we expect this sales momentum to continue into the second quarter and full year compared with the same periods of fiscal 2011. Both of our businesses continued to deliver solid results, even though profitability is down somewhat from the same quarter of last year primarily due to higher raw material costs in mattress fabrics and lower than expected results in our U.S. upholstery fabrics operation. We announced price increases in both segments that are expected to absorb some of these additional costs going forward. Our financial position remains strong and supports our ability to invest in growing our businesses in fiscal 2012. Overall, we have a solid competitive position in both mattress fabrics and upholstery fabrics, and, as always, our primary focus is on outstanding service for our customers as a financially stable and trusted supplier."

The second quarter projection for fiscal 2012 is for overall sales to increase by approximately 4 percent to 8 percent. Pre-tax income for the second quarter of fiscal 2012 is expected to be in the range of $2.6 million to $3.5 million.