Linwood, Pennsylvannia - Foamex International recently announced that in the second quarter (Q2), ended 29 June 2008, it has reduced its debt and doubled its income, but has also seen a 22-percent drop in sales compared with Q2 2007.
Net sales for Q2 2008 were $241 million, down from $308 million from Q2 2007. Foamex said this was mainly due to lower sales volumes across all segments. Gross profit was $20.6 million, or 9 percent, compared to $37.4 million, or 12 percent, in Q2 2007.
Income from operations was $1.7 million compared to $19.2 million for the same period last year, net income, including net gains on the extinguishing debt of $19.6 million, was $15.4 million up from $7.1 million in Q2 2007. The company also reported that consolidated earnings (EBITDA) for Foamex LP was $10.7 million compared to $26.6 million for the same period last year.
"We continue to take measures to offset the impact of the current economic environment, which is marked by higher raw material costs and more cautious spending by customers. As a result of our cost reduction efforts, we began to see positive bottom line results at the end of the second quarter. We expect that the full impact of these efforts will be realised over the balance of 2008 and 2009," said Jack Johnson, president and chief executive of Foamex.