Lexington, Kentucky - Mattress and pillow maker Tempur-Pedic International Inc. reported net income of $16.9 million for the second quarter (Q2) of 2009 compared to a figure of $20.2 million in Q2 2008.
Net sales for the Lexington, Kentucky-based foam group declined 22 percent to $185.2 million in Q2 2009 from $238.7 million in Q2 2008. Net domestic sales fell 19 percent, while international net sales dropped 29 percent.
Tempur-Pedic, well known for its memory-foam polyurethane-based products, said mattress sales declined 24 percent globally, while pillow sales fell 17 percent globally in the quarter.
Gross profit margin was 46.6 percent as compared to 44.4 percent in Q2 2008, as a result of lower commodity costs, more efficient manufacturing and improved pricing, the company said.
During the quarter, Tempur-Pedic reduced total debt by $31.0 million to $369.0 million and increased cash by $3.8 million to $25.0 million.
"During the second quarter, our initiatives to drive sales and margins continued to show progress. Our productivity projects helped us expand gross margins with improvement compared to last year and last quarter, said chief executive officer Mark Sarvary, in a 16 July statement. "Our focus on cash flow continued to display the strength of our business model as we lowered debt $31 million during the quarter. We believe we are well positioned for growth when the economy recovers."
Tempur-Pedic confirmed its previous guidance ranges for earnings and net sales for full year 2009. The company continues to expect net sales for the year to range from $700 million to $740 million.