Linwood, PA, May 13--Foamex International reported a net loss in the first quarter of 2005 of $10.9 million, or $0.44 per diluted share, compared with a net loss of $2.1 million, or $0.09 per diluted share in the first quarter of 2004.
Net sales for the first quarter of 2005 were $332.7 million, up 6% from $313.6 million in the first quarter of 2004.
In the company carpet cushion sector net sales for the quarter were $46.6 million, up marginally from $46.1 million in the first quarter of 2004. Loss from operations in the first quarter of 2005 was $2.1 million as compared to income from operations of $1.3 million in the first quarter of 2004, due primarily to increased costs and raw material availability, which unfavorably affected our manufacturing processes. These results include the rubber and felt product lines, which were recently sold.
Tom Chorman, Foamex's President and CEO, said, "Our first quarter results were generally in line with our expectations. Gross margin was essentially flat when compared with our fourth quarter 2004 performance, despite two raw material price increases in the period. We expect these two periods will be the low point, as we continue to implement customer price increases and other actions to offset the significant increases to our raw material costs over the past year. In the meantime, we continue to reduce our overhead expenses and pursue the business and financial strategies that will strengthen the company longer-term."
