Foamex Posts Lower 2nd Quarter Profit
Linwood, PA, Aug. 13--Foamex International Inc, a maker foam products, on Wednesday posted a lower second-quarter profit and said it was finalizing a refinancing of its bank debt.
Net sales for the second quarter fell to $334.3 million from $345.9 million. Net income fell to $2.7 million, or 10 cents per diluted share, from $81.4 million, or $3.04 per share a year earlier, which included a $77.3 million income tax benefit related to a reversal in that period of a valuation
allowance on deferred income tax assets.
Income from operations fell to $21.2 million for the second quarter of 2003, compared to $25.2 million in the second quarter of 2002, reflecting the impact of raw material cost increases that have not been fully recovered through selling price increases.
Carpet Cushion Products net sales for the second quarter were $54.3 million, down 10% from the second quarter of 2002 due to lower volume related to facility closures and a strategic refocusing of this business for improved profitability. Loss from operations in the second quarter was $0.3 million, compared to a $1.2 million loss in the same period of 2002. Sequentially, the loss from operations improved by $2.8 million from the first quarter of 2003 from the actions under the Company's profit restoration plan.
For the first six months of 2003, Carpet Cushion Products net sales decreased 9% to $103.2 million from $113.2 in the 2002 first half. Loss from operations was $3.4 million in the first half of 2003 compared to a $4.2 million loss during the same period in 2002 primarily due to higher selling prices and operating efficiencies.