From Home Furnishing Business
Tempur Sealy Reports on Q3
Tempur Sealy International reported third-quarter 2013 sales of $735.5 million, an increase of 111.4 percent over the prior-year period.
The net sales increase was due to the inclusion of $389.9 million of Sealy net sales for the third quarter of 2013.
GAAP net income in the third quarter of 2013 was $40.2 million, compared with a net loss of $2 million for the third quarter of 2012. Adjusted net income of $44.9 million was up from $42.3 million the prior-year period.
Gross profit margin was 40.6 percent as compared with 49.2 percent in the third quarter of 2012. The gross profit margin decreased primarily as a result of the inclusion of Sealy, which has lower margins than the Tempur North America and Tempur International segments, and changes in product mix, offset partially by lower sourcing costs.
"Overall our third quarter was in line with our expectations," said Mark Sarvary, CEO of Tempur Sealy International, Lexington, Ky. "The steps we have taken to improve Tempur North America's performance showed progress and led to a slight sales increase during the quarter. Our Sealy business also showed growth during the quarter. However, Tempur International results were slightly below our plan due to continued weakness in Europe. The integration with Sealy continues to progress well, cost synergies continue to track to our plan, and we remain very excited about our ability to capture significant revenue synergies."