Greenville, South Carolina - Income at Span-America Medical Systems Inc. dropped 27 percent in the third quarter to $743 000, despite a 24-percent increase in sales ($16.9 million). Span-America attributed this decline to an increase in foam raw material costs.
However, the medical mattress and custom foam producer said income for the nine months ended 30 June 2012 increased 32 percent to $3.7 million, on sales of $58.4 million. Sales grew by 50 percent in the first nine months.
"Span-America sales benefited from the addition of MC Healthcare that was acquired in December 2011 and continued sales growth from our medical, consumer and industrial products," commented Jim Ferguson, ceo of Span-America. "Our third quarter earnings were affected by significant increases in foam raw material prices, which we were not able to fully pass along to customers during the quarter.
The Greenville, South Carolina company said sales of therapeutic support surfaces, which includes urethane foam mattresses, increased 10 percent in the third quarter to $6.1 million.
Sales in the custom products segment, which includes speciality mattresses for the consumer market, rose 10 percent to $5.3 million in the third quarter of fiscal 2012. Consumer sales were up 9 percent to $4.4 million due to increased demand driven by product design enhancements, Span-America said.