Greenville, South Carolina - Span-America Medical Systems Inc., a manufacturer of pressure-management products for the medical industry, some of which include polyurethane foam, has reported sales down by only one percent to $14.8 million in the third quarter of 2009 (Q3), compared to the same period last year.
"Span-America reported a 25 percent increase in fourth quarter net income even though sales decreased 1 percent from the prior year's fourth quarter," stated Jim Ferguson, president and ceo of Span-America Medical Systems. "Our growth in fourth quarter earnings came from improved manufacturing efficiencies and a lower tax rate compared with last year," he added.
The slight decline in sales, the company said, was mainly due to lower medical segment sales related the expiration of a private-label customer supply contract last year that accounted for $1.2 million of therapeutic support surfaces in Q4 2008.
Medical sales declined 11 percent to $37.8 million overall with all declines occurring in the company's lines of therapeutic support surfaces, which were down by 20 percent to £25.5 million, the statement said.
"We remain positive about Span-America's continued growth based on our attractive medical product lines and the ability to leverage our manufacturing capabilities with our custom products segment," commented Ferguson. "We expect sales of our medical products to be steady early in fiscal 2010 with good potential for growth later in the fiscal year if demand for capital goods improves," he concluded. (RD)