Trinity, North Carolina - Sealy Corp, one of the largest bedding manufacturers in the world, has reported losses in its third quarter (Q3) results, ended 31 Aug, the company announced 7 Oct.
Net sales decreased by 9 percent to $405 million compared to Q3 2007, net income fell from $21.5 million ($0.22 per diluted share) in the same quarter of 2007 to $10.9 million ($0.12 per diluted share) this year. Gross profit was $164.1 million, or 40.5 percent of net sales against 40.3 percent in 2007.
Sealy cut selling, general, and administrative costs by $7.2 million down to $132.9 million for Q3 2008.
"Sealy's third quarter performance once again demonstrated our ability to positively impact our results despite ongoing challenges in the retail environment and heightened cost inflation. We also continued to make progress during the third quarter on reducing our cost structure and effectively managing working capital," said Larry Rogers, Sealy's president and ceo.
He added, "Although we expect increased market weakness in the near term to continue, we will keep managing those areas of our business that we can control and focus on executing against out strategic operating initiatives. We are confident that the actions we are taking will allow us to emerge as a leaner organisation with improved earnings potential when the market turns."