Linwood, PA, April 4--Foamex International Inc. today reported a net loss for the fourth quarter of $15.0 million, or $0.61 per diluted share, compared to a net loss of $3.5 million, or $0.14 per diluted share, in the fourth quarter of 2003.
Net sales for the fourth quarter were $328.6 million, up 4% from $315.2 million in the fourth quarter of 2003 primarily due to the company's pricing initiatives in response to higher raw material costs and growth in the Foam Products segment, offset by lower Automotive sales.
The company reported a net loss for 2004 was $150.9 million, or $6.17 per diluted share, compared to a net loss of $21.5 million, or $0.88 per diluted share, in 2003. The loss in 2004 includes a $128.6 million income tax charge for the establishment of a valuation allowance for the Company's deferred income tax assets.
Net sales for 2004 were $1.27 billion, down 3% from $1.30 billion in 2003, primarily as a result of the $96 million decline in net sales in the Automotive Products segment due to lower volume from sourcing actions by major customers, partially offset by higher net sales in the Foam Products and Technical Products segments.
In the company carpet cushion sector net sales for the fourth quarter were $54.7 million, up 6% from $51.5 million in the fourth quarter of 2003. Income from operations was $0.8 million in the fourth quarter of 2004, compared to $2.6 million in the same period in 2003, due to lower selling prices and higher operating costs.
For the year 2004, Carpet Cushion Products sales were $209.2 million, compared to $208.9 million in 2003. Income from operations in 2004 was $8.5 million, compared to $5.4 million in 2003, primarily due to lower operating costs.
Commenting on the results for Foamex, Tom Chorman, president and chief executive officer, said, "This was a difficult quarter and year for the company. We experienced significant increases in the cost of our chemical raw materials in the second half of the year, which has had a clear adverse impact on our near-term results, and overshadowed positive year-to-year revenue and profit trends in several of the businesses. We are aggressively implementing customer price increases, and tightening spending to manage through this currently difficult environment, while adhering to the strategies that will create long-term financial improvement for the company."
