Lexington, Kentucky -- Tempur-Pedic International Inc., a leading manufacturer of premium mattresses and pillows worldwide, has reported record results for 2011 and the fourth quarter, due to improved international sales and increases in the mattress market.
In the fourth quarter, net sales increased 25 percent to $366.8 million from $292.7 million in the third months ended 31 Dec 2010. Q4 sales in the North America were strong, rising by 26 percent, while international sales were up 25 percent during the same period.
Tempur-Pedic, which makes polyurethane foam sleep products, said in a 24 Jan news release that mattress sales increased 26 percent globally, reaching $238 million in Q4. The biggest increase was in the international market where sales were up by 33 percent at £72 million. In North America, sales were $166 million, up 24 percent from Q4 2010.
Pillow sales increased 16 percent globally in Q4. In North America, pillow sales reached $22 million, up 15 percent year-on-year. Internationally, pillow sales were $21 million, up 17 percent from Q4 2010.
Gross profit margin was 52.1 percent, up by only 0.2 percent from Q4 2010. Operating profit margin was 23.4 percent, down from 24.5 percent in the fourth quarter of 2010.
The company said net income for the year ended 31 Dec 2011 was $219.6 million, up 42.2 percent from $157.1 million in 2010.
Net sales increased 28 percent to $1417.9 million in 2011 from $1105.4 million the previous year. Net sales in North America increased 30 percent and international net sales were up 24 percent.
Gross profit margin for the year was 52.4 percent compared to an equally strong 50.2 percent in 2010, while operating profit margin was 24.0 percent, up from 22.2 percent in 2010.
"In 2011, we delivered strong financial performance, strengthened our competitiveness and implemented a range of strategic growth initiatives," commented Mark Sarvary, ceo of Tempur-Pedic.
He added, "Over the next year, we plan to increase our rate of investment in areas that will drive growth including a major new product launch, increased advertising, and expanded distribution. In addition, our R&D team is focused on… improving existing product performance and lowering costs as well as another major new product launch in 2013."