Culp Sales up 4.2% in First Quarter

August 28, 2007  by in UnCategorized   

By Home Furnishings Business in on August 2007 Culp’s mattress ticking division helped boost the company’s first quarter sales ended July 29 to $65.2 million, a 4.2 percent increase compared with $62.6 million posted in the first quarter last year.

Income for the quarter was $851,000 compared with net income of $132,000 for the same quarter last year. Results for the quarter just ended reflect a higher tax rate due to higher taxable income from the company’s U.S. operations compared with the prior-year period.

“We are off to an encouraging start for the first quarter of fiscal 2008 with overall higher sales and improved profitability compared with the same period last year,” said Frank Saxon, chief executive officer. “Our performance primarily reflects the significant gains made in our mattress fabrics business.”

Saxon said the acquisition of the mattress fabrics product line of Burlington House from International Textile Group at the end of the third quarter last year added to the mattress business’ growth.

“The upholstery fabrics segment continued to face significant industrywide challenges during the quarter,” Saxon said. “However, with our China platform and the aggressive restructuring of our U.S. upholstery fabric operations, we believe we are now better positioned to meet these challenges, remain profitable and benefit from any upturn in overall demand.”