Culp Inches Toward Profitability

June 26, 2006  by in UnCategorized   

By Home Furnishings Business in Upholstery on June 2006 Fabric supplier Culp reported a fourth quarter net loss of $1.53 million for the quarter ended April 30 from a net loss of $7.73 million during the same quarter last year.

Sales for the quarter were $70.7 million, down from $74.2 million during the same period last year. The company said it expects first quarter sales to decline slightly more than the 4.7 percent decline in the prior quarter.

For the year, the company reported net sales of $261.1 million, compared with $286.5 million last fiscal year. Net loss for fiscal 2006 was $11.8 million, compared with a net loss of $17.9 million for fiscal 2005.

Excluding restructuring and related charges, net loss for fiscal 2006 was $438,000. Excluding restructuring and related charges and goodwill impairment, net loss for fiscal 2005 was $3.4 million.

“The fourth quarter of 2006 was a defining point for Culp,” said Rob Culp, chairman of the board and chief executive officer. “Our improved financial and operating results reflect the benefits of the aggressive steps we have taken this year to more effectively position Culp in the dynamic global marketplace. We are pleased with the return to a quarterly operating profit in the upholstery fabrics segment after a challenging two-year period of quarterly operating losses. Overall, we believe we have made significant progress over the past year in transforming to a leaner and more agile business model.”