Trinity, North Carolina - Bedding manufacturer Sealy Corp. had net sales for the fiscal quarter ended 30 Nov 2008 of $325.8 million, a 26.2-percent decline compared to the same period in 2007. But excluding an extra week in fiscal 2007, net sales declined by 20.3 percent.
Sealy, which calls itself the world's largest producer of bedding, said it suffered a net loss for the fourth quarter of $42.0 million, as opposed to net income of $17.1 million for the comparable period last year. These results include a charge of $27.5 million to write-off goodwill related to the company's Europe and Puerto Rico units, and refinancing expenses, Sealy pointed out.
"During the fourth quarter, Sealy continued to make progress in the areas of our business that we can control, despite a very difficult environment for the mattress industry," commented Larry Rogers, Sealy's president and chief executive officer, in Sealy's statement. Sealy secured an amendment to its credit agreement, implemented more cost-reduction initiatives to further streamline its expense structure, and rolled out new Posturepedic and Sealy-branded products. Rogers said these achievements "were offset by deteriorating economic conditions and higher raw material prices which impacted our results from both a revenue and cost standpoint."
"I believe that there is no manufacturer in the bedding industry that is better positioned than Sealy in these challenging conditions," Rogers added, saying that Sealy now has "greater financial flexibility, a leaner cost structure, a comprehensive portfolio of products across a wide range of price points and technologies, wide distribution with strong retailer relationships, and a diversified international presence."
While the group expects "continued market weakness as we move into 2009," Sealy will focus on serving customers and executing initiatives to generate cash and enhance its position, Rogers continued.
Net sales for fiscal 2008 decreased 12.0 percent to $1498.0 million compared to sales for fiscal 2007. Gross profit was $584.0 million, or 39.0 percent of net sales, versus $709.6 million, or 41.7 percent of net sales, for 2007. The net loss was $2.9 million compared to net income of $79.4 million for the comparable period a year earlier.