Foamex Swings to Profit in Second Quarter
Net sales were $320.8 million, 7% below prior year sales of $344.9 million.
CEO John G. Johnson, Jr. said that despite the soft market, the company reduced its debt by $11 million and it will continue to pay down debt. He said the company would also focus on cost cutting. The company has had two plant consolidations this year and has sold its majority interest in Foamex Asia.
Foamex said the decline in net sales was due to lower volume in the Foam Products and Carpet Cushion Products segments.
Carpet Cushion Products net sales for the second quarter decreased 33% to $34.8 million from $52.2 million in 2006, reflecting soft market conditions and declines in volume and price. Income from operations was $2.8 million compared to $0.6 million in the second quarter of 2006, as lower average raw material costs more than offset lower net sales.
Automotive Products net sales for the second quarter of 2007 increased 28% to $144.4 million from $112.8 million in the second quarter of 2006, primarily as a result of revenues from a new lamination contract. Income from operations increased $1.8 million to $9.1 million for the second quarter of 2007.
Foamex also expects operating income for the full year of $85 million to $95 million, including restructuring costs of approximately $6 million and depreciation and amortization of approximately $20 million.
The Company anticipates capital expenditures of approximately $13 to $16 million for full-year 2007.