From Home Furnishing Business
Natuzzi Reports Good Year, Slower Fourth Quarter
By Home Furnishings Business in Leather Upholstery on April 2007
Natuzzi, Italys largest furniture manufacturer, reported a 9.8 percent increase in revenues to $924.2 million during 2006, but saw sales in its latest quarter increase by a much slower pace, 1.3 percent, according to an announcement issued Monday.
For the full year ended Dec. 31, the company recorded net earnings of $15.5 million after having posted a loss of $18.2 million the previous year. Natuzzi reports most results in euros, but provides a few key results in dollars. Sales in the latest quarter are being negatively affected by the Americas, where net sales declined 9.9 percent in the fourth quarter. In the same period, net sales in Europe increased 5.5 percent.
We are pleased with the positive net sales performance reported year over year, return to profit and strong cash flow from operations achieved in 2006, said Ernesto Greco, CEO. The business scenario, unfortunately, has been and continues to be very soft due to the very aggressive pricing competition and unfavorable exchange rates ... In this challenging market, we remain committed to invest in the repositioning of the Natuzzi brand and reorganization of our sales activities, and we continue to be focused on the current restructuring process of our operations so to regain competitiveness and profitability.