Lexington, Kentucky - Mattress and pillow maker Tempur-Pedic International Inc. has seen its net sales decline 28 percent to $177.1 million in the first quarter of 2009. The company said mattress sales declined 29 percent globally, while sales of pillows declined 27 percent globally.
The company reported net income of $13.3 million for Q1 2009 compared to net income of $13.5 million in Q1 2008.
Tempur-Pedic said it reduced operating expenses by $22.7 million to $56.0 million in Q1 2009 from $78.7 million in the the same period of 2008 and also cut its total debt by $19.3 million to $400.0 million.
"Sales in the first quarter were modestly below our expectations," said chief financial officer Dale Williams, in the company's 16 April results statement. He pointed out that while "domestic sales were essentially flat to the fourth quarter run rate, we did not experience the normal seasonal lift." Meanwhile, internationally, "sales were down from the fourth quarter, reflecting a weakened run rate."
Williams added that, "as visibility continues to be low," Tempur-Pedic has lowered its sales guidance, and also its production plans and operating expenses.