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From Home Furnishing Business
Tempur Sealy 1Q Sales Climb; Income Drops
April 29,
2015 by in Financial Reports, Industry 
Bedding supplier Tempur Sealy International (NYSE: TPX) reported net income of $23.4 million for the first quarter ended March 31, a 14.6 percent decline from net income of $27.4 million in the same quarter last year.
Net sales for the quarter were $739.5 million, a 5.4 percent increase from sales of $701.9 million in the first quarter of last year.
The company said a 7.5 percent increase in North American business carried the growth in sales, and said international sales, despite a 2.6 percent decline, were better than originally projected.
The company’s largest investor H Partners has called for the ouster of CEO Mark Sarvary, chairman Andrews McLane and board member Christopher Masto. H Partners has said the management isn’t doing enough to boost shareholder value since the acquisition of Sealy.
Management has said it has been working thought the integration of the brands since the 2012 acquisition.
"The company has reestablished its industry-leading position, but more work remains to be done,” said McLane. “Today, Tempur Sealy is at a critical juncture, and a change in leadership, including the CEO, at this time would result in a transition period that would, at a minimum, slow the momentum that we are currently experiencing, if not derail it altogether. It is critical to the success of our business and the investments of our shareholders that the current board and management team continue executing on the plan that is clearly delivering positive results."
The complete earnings release is available online.