Interface Swings to Profit in First Quarter
Atlanta, GA, April 25, 2013 -- Interface reported first quarter net income of $7.0 million, or $0.11 per share, compared with a net loss in the first quarter last year of $5.9 million, or $0.09 per share.
Sales for the quarter were $210.4 million, essentially even with sales of $210.0 million in the first quarter of 2012.
"Even though the first quarter is seasonally our slowest period, our Americas division jumped out to a strong start by posting a record number for first quarter sales," said CEO Daniel T. Hendrix.
"The revenue gains in the Americas and a double-digit percentage sales increase in Southeast Asia were offset by weak sales in Europe due to a combination of continued economic uncertainty and unusually bad weather in the U.K. at the end of the quarter, and by the impact of the fire at our Picton, Australia plant last summer."
Interface said sales in its Americas business, which makes up about half of its worldwide business, were up 9% year-over-year, with strong growth coming in the corporate office segment (up 21%) as well as non-office segments such as hospitality (up 68%), government (up 4%) and healthcare (up 3%).
Sales in our consumer business, Flor, were up 24% year-over-year for the first quarter, mostly due the addition of more retail stores.
"Gross margin finished ahead of the first quarter last year, but was below our target due to under-absorption of fixed costs associated with lower than expected production volumes," said CFO Patrick Lynch.