Linwood, PA, November 5--Foamex in the third quarter reported a net loss of $114.5 million, or $4.68 per diluted share, compared with a net loss of $11.0 million, or $0.45 per diluted share, in the third quarter of 2003.
The company said the net loss reflects a $112.0 million charge resulting from the company's decision to establish a valuation allowance against its deferred tax assets. The company has determined that this one-time non-cash charge is appropriate given the impact that higher chemical costs will have on its near-term operating results, and the general uncertainty in oil and gas markets that affects the price of our raw materials.
Net sales for the third quarter of 2004 were $310.0 million, down 4% from $323.5 million in the third quarter of 2003 primarily due to lower volume in the Automotive Products segment, which offset higher net sales in other segments.
In the company Carpet Cushion Products unit net sales for the quarter were $54.8 million, up 1% from $54.1 million in the third quarter of 2003. Income from operations in the third quarter of 2004 was $3.0 million, up 69% from $1.8 million in the third quarter of 2003, primarily due to lower operating costs.
