Lexington, Kentucky - - Premium mattress and pillow maker Tempur-Pedic International Inc. has announced better-than-expected fourth quarter results, boosted by improved gross profit margins and domestic sales .
The company also announced a $200 million share repurchase programme and gave a strong forecast for the year ahead in the 21 Jan report.
Net sales increased by 20 percent to $292.7 million from $244.8 million in the fourth quarter of 2009. In North America, sales increased by 31 percent, while internationally there was a 1 percent increase.
Quarterly earnings were said to be $46.3 million compared to $29.1 million during the same period in 2009.
The company reported that, in the fourth quarter, mattress sales increased by 20 percent globally, with a 32-percent increase in North America but a 1-percent decrease internationally. Pillow sales increased by 18 percent globally. In North America, the increase was 31 percent while internationally there was an 8-percent increase.
In its full year summary, Tempur reported a 33-percent increase in sales to $1105.4 million from $831.2 million for the full year 2009, with a 47-percent rise in North American sales.
Tempur ceo Mark Sarvary said: "In 2010 we delivered strong financial results and at the same time executed well on our strategic growth initiatives; we strengthened the product range and greatly improved how well consumers understand and appreciate the unique benefits of Tempur-Pedic."
He added: "In 2011 we will implement the next phases of our plan to become the world's favourite mattress and pillow brand. We will continue to enhance our product range both in the US and internationally, increase our investment in consumer communication and broaden distribution in all geographies."
The company said it expects to make sales of $1230 million to $1280 million in 2011. LMH