Linwood, Pennsylvania - Revenue for the first quarter of 2008 for major US polyurethane foamer Foamex International Inc. dropped to $241 million from $306 million in the first quarter of 2007. Foamex said this decrease was largely a result of lower sales volumes across all segments, as well as from lower average selling prices in its carpet cushion business.
Gross profit for Foamex was $21.2 million, or 9 percent of sales, compared to $39.7 million, or 13 percent, in Q1 2007. Loss from operations of $34.0 million for Q1 2008 included a goodwill impairment charge of $38.5 million: income from operations was $22.2 million in Q1 2007. Net loss for the first quarter was $48.6 million, compared to a net loss of $17.6 million, in Q1 2007.
"While the deterioration of the US economy continues to impact volumes, we remain focused on our efforts to reduce costs, streamline operations, and develop new products, markets and channels in order to position the company for future growth," said Jack Johnson, president and ceo, in the group's 9 May results announcement.
As Foamex has already announced, on 22 April 2008, D. E. Shaw Laminar Portfolios llc, Goldman, Sachs & Co., and Sigma Capital Associates llc purchased shares of Series D preferred stock, giving Foamex $18.5 million to help meet its financial covenants.