Linwood, PA, May 6--Foamex International Inc. today announced its 2004 first quarter results.
Net sales for the first quarter of 2004 were $313.6 million, down 4% from $328.2 million in the first quarter of 2003. Gross profit in the first quarter of 2004 was $39.8 million, up 30% from $30.5 million in the first quarter of 2003. Gross profit margin for the first quarter of 2004 was 12.7%, up from 9.3% in the first quarter of 2003, and the fifth consecutive quarter of gross profit margin recovery. The gross profit margin improvement reflects lower overall plant operating costs and a better mix of value-added products.
Net loss for the first quarter of 2004 was $2.1 million, or $0.09 per diluted share, compared with a net loss of $10.4 million, or $0.43 per diluted share in the first quarter of 2003.
Income from operations was $13.2 million for the first quarter of 2004, up 37% from $9.6 million in the first quarter of 2003. Selling, general and administrative expenses for the first quarter of 2004 were $26.0 million versus $20.9 million in the first quarter of 2003. The quarter's SG&A expenses include a charge of $3.7 million related to the bankruptcy of a major customer. Interest and debt issuance expense for the first quarter of 2004 was $18.6 million, a decrease from $19.1 million in the first quarter 2003, primarily due to lower amortization of debt issuance cost.
Commenting on the results, Tom Chorman, Foamex's President and Chief Executive Officer, said: "We are encouraged with the improvement we have seen in several areas this quarter, particularly since we absorbed a significant charge associated with the bankruptcy of a major bedding customer. Our continued focus on developing more consumer oriented products, improving our supply chain efficiency and overall cost management is showing positive results, as Foamex recorded its fifth consecutive quarter of gross profit margin improvement. While we still face difficult marketplace challenges, I remain confident that as the year progresses, Foamex will continue to show improved operating performance."
Foam Products' net sales for the first quarter of 2004 were $134.4 million, up 14% from $118.2 million in the first quarter of 2003 due primarily to higher volumes of value-added products. Income from operations for the first quarter of 2004 was $16.3 million, up 135% from $6.9 million in the first quarter of 2003. The increase primarily reflects the effect of higher volume, improved product mix and improved operating efficiency.
Automotive Products' net sales for the first quarter of 2004 were $94.0 million, down 22% from $121.1 million in the first quarter of 2003. The decrease is primarily the result of customer sourcing actions. Income from operations for the first quarter of 2004 was $5.0 million, down 47% from $9.4 million in the first quarter of 2003, primarily due to the effect of lower volume.
Carpet Cushion Products' net sales for the first quarter of 2004 were $46.1 million, down 6% from $49.1 million in the first quarter of 2003 due to lower volume. Income from operations in the first quarter of 2004 was $1.3 million as compared to a loss of $0.6 million in the first quarter of 2003, due to the continued benefit from plant consolidations and efficiency improvements implemented over the past year, and lower material costs.
Technical Products' net sales for the first quarter of 2004 were $31.1 million, down 4% from $32.4 million in the first quarter of 2003, due to a higher mix of lower priced products which offset a 3% unit volume gain. Income from operations for the first quarter of 2004 was $8.9 million, the same as the first quarter of 2003.
