Foamex Income Falls in Third Quarter

Media, PA, Nov. 7, 2008--Foamex International said income from operations fell to $9.9 million in the third quarter, compared to $12.2 million a year ago.

Net sales for quarter were $234 million, down from $291 million a year ago. The decrease was driven by lower sales volumes across all segments. Gross profit was $25.7 million, or 11% of net sales, compared to $34.1 million, or 12% of net sales, in the third quarter of 2007.

"Through assignments of second lien term loans and our focus on working capital, we reduced debt levels in the third quarter by $38 million to $379.7 million." said CEO Jack Johnson.

"We have moved aggressively over the past 18 months to deal with these challenging business conditions and position ourselves for the future. We have consolidated our core businesses, improving economies of scale and operating efficiencies. We continue to invest in our innovative technologies, new product development and new market opportunities. These efforts, coupled with ongoing debt reduction, should enable us to realize the full earnings power of our core businesses and our technological advantage as the economy stabilizes and begins to improve."