Linwood, PA, August. 5--Foamex International announced a net loss in the second quarter of 2004 of $2.6 million, or $0.11 per diluted share, compared with net income of $3.4 million, or $0.13 per diluted share, in the second quarter of 2003.
Net sales for the second quarter of 2004 were $314.1 million, down 7% from $337.6 million in the second quarter of 2003 due to lower volume in the automotive segment.
Commenting on the results, Tom Chorman, Foamex's president and chief executive officer, said: "The business climate in our industry has become more challenging as a result of the rising costs of raw materials and their respective feedstocks.
"Based on the actions we took earlier in the year to delay the impact of higher chemical costs, and the continued progress of our other profit recovery strategies, we were able to achieve another quarter of gross margin progress. We continue to work with our customers to increase prices to deal with these increasing cost pressures, while also pursuing higher margin business opportunities, supply chain efficiencies and international growth to advance our long-term strategy."
The company reported a net loss for the first half of 2004 of $4.7 million, or $0.19 per diluted share, compared to a net loss of $7.0 million, or $0.29 per diluted share, in 2003.
Net sales for the first half of 2004 were $627.8 million, down 6% from $665.8 million in the first half of 2003 as lower volumes in the automotive segment were only partially offset by higher revenues in the Foam Products segment.
In the carpet cushion products sector net sales for the second quarter were $53.6 million, down 1% from $54.1 million in the second quarter of 2003. Income from operations in the second quarter of 2004 was $3.4 million as compared to $1.6 million in the second quarter of 2003, primarily due to lower material and operating costs.
For the first six months of 2004, carpet cushion products net sales decreased 3% to $99.7 million from $103.2 in the 2003 first half, primarily due to volume declines. Income from operations was $4.7 million in the first half of 2004 compared to $1.0 million during the same period in 2003, primarily due to lower material and operating costs.
