Culp Weaves Profits From Lower Sales

June 18, 2008  by in UnCategorized   

By Home Furnishings Business in Mattresses on June 2008 Culp, the world’s largest maker of fabrics for mattresses and upholstery, announced Wednesday it attained profitability in both its fourth quarter and fiscal year despite lower sales in both periods.

For the quarter ended April 27, net sales of $64 million were down from $73.2 million a year earlier, and net income of $2.1 million improved upon a $40,000 net loss.

For the fiscal year, net sales of $254 million were down by $6.5 million from the previous year, while the company posted net income of $5.4 million versus a loss of $1.3 million.

President and CEO Frank Saxon said, “We are pleased with our performance for the fourth quarter and year considering the current challenges we are facing. The uncertain economy, housing crisis and high energy costs have continued to influence consumer demand for furniture, and, to a lesser extent, bedding products. In spite of this environment, fiscal 2008 was an outstanding year for Culp, both in terms of our financial performance and the improvement in our competitive position.”

He called Culp, “a much stronger company than a year ago with respect to our value proposition to customers and our ability, both operationally and financially, to take advantage of opportunities in the current competitive landscape.”