Span-America's Q1 sales, earnings down in difficult environment
Greenville, South Carolina - Foam products maker Span-America Medical Systems Inc. reported a sales decline for the first quarter of fiscal 2009 of 2 percent to $13.4 million, with net income down 15 percent to $887 000 (Q1 2008 ended 31 Dec 2008).
"Our sales and earnings were down in the first quarter, but we are pleased with the strength of our business in a difficult market environment," commented Jim Ferguson, president and chief executive officer of Span-America, in a company statement.
Sales were down 2 percent from last year due primarily to volume declines in the custom products segment, where sales decreased 12 percent to $3.6 million as a result of lower demand for consumer bedding and industrial foam for the automotive industry, Ferguson said.
On the medical side, sales rose 2 percent to $9.8 million partly from increased buying of patient positioners, overlays and seating products ahead of a 1 Jan 2009 price increase, he added.
Although Span-America's total sales were down from last year, "we made good progress in expanding our customer base in both the medical and custom products segments. We are also optimistic about several new medical products that we will introduce later in the fiscal year," the ceo continued.
Discussing earnings, Ferguson said these were affected by lower sales volume in custom products, a less-profitable sales mix within the medical segment and an increase in selling and administrative expenses compared with last year's first quarter."
Span-America makes flexible polyurethane foam products used for pressure relief in healthcare, including mattresses and cushions designed to prevent bed-sores in immobilised patients.