For Q2 Interface Global Reports Flat Earnings on 5.9% Decrease in Sales

La Grange, GA, July 28, 2016—Interface Global reported sales of $248.2 million, or $0.32 per share, in Q2 2016, versus $263.6 million, or $0.33 per share, in Q2 2015, a 5.9% decrease in net sales.

“Second quarter sales in our Americas business declined 6.0% compared with its all-time record high in the prior year period, with similar decreases in both the corporate office and non-office segments, although the hospitality sector was up 27%,” reports the business. “Sales in the Company's core U.S. modular carpet business were up 1% in the quarter, but this was more than offset by a decline in its InterfaceServices business due to large retail projects that were delayed until the second half of the year, coupled with soft business conditions in Canada and Brazil as a result of the weakened oil and gas sector.”

Patrick C. Lynch, senior vice president and chief financial officer, commented, "The second quarter was a continuation of the dynamics we've been seeing over the past few quarters, with softer sales offset by substantial improvements in gross margin driven by higher selling prices, lower input costs, better material usage and improved production efficiencies from our lean manufacturing processes. We managed working capital well during the period, drawing down inventory levels with scaled back production, and we generated substantial cash from operating activities which allowed us to continue repaying debt and buying back stock. With gross margins lining up toward our near term target of 40%, we can now focus even more attention on growing the top line."

For the first six months of 2016, sales were $470.8 million, down 5.9%, compared with $500.5 million in the first six months last year.