Media, Pennsylvania - Polyurethane foam products manufacturer Foamex International Inc. has continued to reduce debt, the company reported in its third quarter (Q3) 2008 results.
Net sales declined from $291 million in Q3 2007 to $234 million, driven by lower sales volumes across all segments, the company said. Gross profit was down to $25.7 million from $34.1 million in the same period in 2007.
Income from operations fell from $12.2 million in Q3 2007 to $9.9 million in Q3 2008 and consolidated earnings (EBITDA) totalled $15.7 million for the quarter.
"Through assignments of second lien term loans and our focus on working capital, we reduced debt levels in the third quarter by $38 million to $79.7 million. These accomplishments further demonstrate our ability to solidly position the company in the face of weak-end markets," said Foamex president and ceo Jack Johnson.
He concluded, "we have moved aggressively over the past 18 months to deal with these challenging business conditions and position ourselves for the future. We have consolidated our core businesses, improving economies of scale and operating efficiencies. We continue to invest in our innovative technologies, new product development and new market opportunities. These efforts, couple with ongoing debt reduction, should enable us to realise the full earnings power of our core businesses and our technological advantage as the economy stabilises and begins to improve."