Tempur-Pedic Reports Profit
January 23, 2009
In a season that's been short on profits, Tempur-Pedic International, Lexington, Ky., reported Thursday that it earned $1.1 million in its fourth quarter even as net sales declined 35 percent. The company's net profit totaled $39.9 million in the same period of 2007.
For the full year, the maker of high-end mattresses recorded a profit of $58.9 million, versus $141.5 million the previous year, as sales slipped 16 percent to $927.8 million from $1.1 billion a year earlier.
Tempur-Pedic expects a tough 2009, with total sales ranging from $770 million to $790 million. CFO Dale Williams said that with the difficulty of forecasting in a difficult environment, the company assumed that volumes will not improve from the fourth-quarter rate.
"During the fourth quarter we executed well in a challenging environment," said CEO Mark Sarvary. "While consumer spending worsened, we responded quickly to improve earnings. At the same time we substantially improved our balance sheet through a focus on working capital and other cash generating initiatives. ... As a result we enter 2009 well positioned financially."
He said the company is taking steps to improve margins and reduce costs. At the same time, the company is focusing on a series of strategic initiatives designed to drive sales in the short term and position the company for growth when the company improves, Sarvary said.
For the full year, the maker of high-end mattresses recorded a profit of $58.9 million, versus $141.5 million the previous year, as sales slipped 16 percent to $927.8 million from $1.1 billion a year earlier.
Tempur-Pedic expects a tough 2009, with total sales ranging from $770 million to $790 million. CFO Dale Williams said that with the difficulty of forecasting in a difficult environment, the company assumed that volumes will not improve from the fourth-quarter rate.
"During the fourth quarter we executed well in a challenging environment," said CEO Mark Sarvary. "While consumer spending worsened, we responded quickly to improve earnings. At the same time we substantially improved our balance sheet through a focus on working capital and other cash generating initiatives. ... As a result we enter 2009 well positioned financially."
He said the company is taking steps to improve margins and reduce costs. At the same time, the company is focusing on a series of strategic initiatives designed to drive sales in the short term and position the company for growth when the company improves, Sarvary said.
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