Natuzzi Posts Loss On 10.9 Percent Sales Decline

November 14, 2007  by in UnCategorized   

By Home Furnishings Business in Leather Upholstery on November 2007 Natuzzi, Italy’s largest furniture manufacturer, reported a 10.9 percent decline in revenues during its third quarter, which resulted in a net loss of EUR 14.1 million. The company posted net earnings of EUR 0.8 million in the same period of 2006.

Revenues totaled EUR 141.3 million. The manufacturer, which operates 290 Natuzzi stores worldwide, said sales in the Americas declined by 19 percent during the quarter. The decline in Europe was 6.1 percent, and sales dipped by 8.4 percent in the rest of the world.

Chairman and CEO Pasquale Natuzzi said unfavorable exchange rates of the Euro against the U.S. dollar, in particular, had a negative impact. “The furnishings sector still continues to suffer from widespread weak business conditions in most major markets, particularly (in) the U.S., where sluggish economic activity and concerns about the credit situation have dampened the demand for discretionary spending,” he said. “We remain committed to investing in the repositioning of the Natuzzi brand and the reorganization of our sales activities, and we continue to be focused on the current restructuring process of our operations to regain competitiveness and profitability in the medium term.”