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Culp 3Q Income Drops; Sales Climb
February 29,
2012 by in UnCategorized 
By Home Furnishings Business in Financial Reports on March 1, 2012
Home furnishings fabric supplier
Culp (
NYSE: CFI) reported net income of $1.8 million for the third quarter ended Jan. 29, a 25 percent decline from net income of $2.4 million reported in the third quarter of last year.
Net sales for the quarter climbed 17 percent to $60.5 million, compared to $51.7 million in the same quarter last year.
We are very pleased with the continued momentum in our sales for the third quarter of fiscal 2012, said Frank Saxon, Culp CEO. This positive trend reflects both improved industry demand and the success of our sales and marketing initiatives, along with the benefits of our innovative designs and lean global manufacturing platform. Both of our businesses had a strong sales performance in what is typically a slower quarterly period due to scheduled holiday plant shutdowns. Overall, our operating margins have continued to be affected by higher raw material costs and a stronger Chinese currency compared with the same quarter a year ago.
Mattress fabric sales for the third quarter were $34.7 million, a 24 percent increase compared with $28.0 million for the third quarter of fiscal 2011.
Upholstery fabric sales were $25.7 million, a 9 percent increase compared with $23.7 million in the third quarter of fiscal 2011. Sales of China-produced fabrics, which includes sales of Culp Europe, were $22.6 million in the third quarter of fiscal 2012, up 9.2 percent over the prior year period, while sales of U.S. produced fabrics were $3.1 million, up 5.5 percent from the third quarter of fiscal 2011.
The entire earnings release can be found online. http://phx.corporate-ir.net/phoenix.zhtml?c=62145&p=IROL-SingleRelease&ID=1667530&highlight=