Culp Expects Improved Third Quarter Revenue

January 12, 2010  by in UnCategorized   

By Home Furnishings Business in on January 13, 2010 Fabric supplier Culp (NYSE: CFI) has revised its expectations upward for the third quarter ending Jan. 31.

The company is now expected to reports sales for the quarter to be up about 18 percent over the same quarter last year. Culp's mattress ticking sales are expected to be up about 7 percent, and upholstery fabrics' sales are expected to be up about 34 percent over the same quarter last year.

These projected results compare with previously announced expectations of a 5 percent sales increase for the company as a whole and for each business segment. Culp currently expects pre-tax income to be in the range of $3.4 to $3.8 million for the third quarter. These projected results are higher than the company's previously announced expectation of $2.1 to $2.9 million for the current quarter.

"Our projected financial results for the third quarter of fiscal 2010 reflect better sales growth than anticipated, primarily in our upholstery fabrics business," said Frank Saxon, president and chief executive officer. "Our mattress fabrics business has continued to perform well, up slightly from previous expectations. During the third quarter we have seen a greater improvement in upholstery fabrics performance due to favorable results from our sales and marketing initiatives and an improved macro environment. While we are pleased with the progress we are making, we remain cautious about the outlook for future demand trends in the home furnishings industry."

The company expects to report financial and operating results for the third quarter of fiscal 2010 during the first week of March. Culp's fiscal year 2010 runs from May 3, 2009 through May 2.