Natuzzi Posts 1Q Loss of $14.5 Million
May 28, 2009
Leather upholstery specialist Natuzzi Group (NTZ) reported first quarter sales of $155.15 million, 35.6 percent drop from the same quarter last year.
The company posted an operating loss of $23.14 million in the quarter, compared to an operating loss of $16.9 million during the first quarter of 2008. Natuzzi's net loss for the quarter was $14.5 million, compared to a net loss of $32.6 million during the same period of 2008.
Upholstery sales for the quarter were $135.1 million for the quarter, compared to $214.3 million during the same quarter last year. European sales contributed 61 percent to the total, while sales in the Americas made up 30.4 percent and sales in the rest of the world were 8.6 percent of the total.
"The furniture industry continues to be under pressure due to a challenging economic environment; as a result, we were unable to increase gross profit due to the decline in net sales although deleveraging was partially offset by a significant reduction in production costs," said Pasquale Natuzzi, chairman and chief executive officer. "In the meantime, we continue, in line with our positive trend already started in the last quarter 2008, to make meaningful progress in certain initiatives to increase efficiencies and reduce costs in our business which should lead to significant operating margin expansion and a stronger cash position longer term."
The company posted an operating loss of $23.14 million in the quarter, compared to an operating loss of $16.9 million during the first quarter of 2008. Natuzzi's net loss for the quarter was $14.5 million, compared to a net loss of $32.6 million during the same period of 2008.
Upholstery sales for the quarter were $135.1 million for the quarter, compared to $214.3 million during the same quarter last year. European sales contributed 61 percent to the total, while sales in the Americas made up 30.4 percent and sales in the rest of the world were 8.6 percent of the total.
"The furniture industry continues to be under pressure due to a challenging economic environment; as a result, we were unable to increase gross profit due to the decline in net sales although deleveraging was partially offset by a significant reduction in production costs," said Pasquale Natuzzi, chairman and chief executive officer. "In the meantime, we continue, in line with our positive trend already started in the last quarter 2008, to make meaningful progress in certain initiatives to increase efficiencies and reduce costs in our business which should lead to significant operating margin expansion and a stronger cash position longer term."
