Sealy Announces 20.3% 4Q Decline
January 16, 2009
Sealy, the world's largest mattress maker, announced Thursday that its fourth-quarter sales declined $115.5 million to $325.8 million. Accounting for an extra week in its 2007 fiscal calendar, sales declined 20.3 percent.
The Trinity, N.C.-based company reported a net loss of $42 million for the fourth quarter versus net income of $17.1 million in the same period a year earlier. The results included a $27.5 million impairment charge to write off the goodwill related to the company's reporting units in Europe and Puerto Rico, and refinancing expenses tied to the company's amended credit agreement.
For the year, net sales declined 12 percent to $1.498 billion, with a net loss of $2.9 million. A year earlier, the company reported net income of $79.4 million.
"During the fourth quarter, Sealy continued to make progress in the areas of our business that we can control, despite a very difficult environment for the mattress industry," said President and CEO Larry Rogers.
He said accomplishments included securing a new credit agreement and implementing cost reductions.
"I believe that there is no manufacturer in the bedding industry that is better positioned than Sealy in these challenging conditions," Rogers said. "Sealy now has greater financial flexibility, a leaner cost structure, a comprehensive portfolio of products across a wide range of price points and technologies, wide distribution with strong retailer relationships, and a diversified international presence."
The Trinity, N.C.-based company reported a net loss of $42 million for the fourth quarter versus net income of $17.1 million in the same period a year earlier. The results included a $27.5 million impairment charge to write off the goodwill related to the company's reporting units in Europe and Puerto Rico, and refinancing expenses tied to the company's amended credit agreement.
For the year, net sales declined 12 percent to $1.498 billion, with a net loss of $2.9 million. A year earlier, the company reported net income of $79.4 million.
"During the fourth quarter, Sealy continued to make progress in the areas of our business that we can control, despite a very difficult environment for the mattress industry," said President and CEO Larry Rogers.
He said accomplishments included securing a new credit agreement and implementing cost reductions.
"I believe that there is no manufacturer in the bedding industry that is better positioned than Sealy in these challenging conditions," Rogers said. "Sealy now has greater financial flexibility, a leaner cost structure, a comprehensive portfolio of products across a wide range of price points and technologies, wide distribution with strong retailer relationships, and a diversified international presence."
