Interface Profit More Than Doubles in Quarter

Atlanta, GA, Oct. 27, 2010 -- Modular carpet maker Interface, Inc. reported third quarter net income of $12.1 million, or $0.19 per share compared with $5.5 million, or $0.09 per share, in the third quarter of 2009.

Sales for the quarter were $252.7 million, compared to $218.4 million last year, an increase of 15.7%. The company said that orders grew 20% in the third quarter to their highest level in eight quarters.

"We once again achieved significant year-over-year increases in overall sales, margins and earnings, as we gained additional market share and benefited from the ongoing secular shift toward carpet tile," said CEO Daniel T. Hendrix.

"Our sales continued to be driven by recovering demand from the corporate office market globally, as well as strong results in the hospitality, education and government sectors. Geographically, the sales environment in the emerging markets, particularly in China and India, was increasingly robust while performance in the Asia-Pacific region also remained strong overall.

"Demand in North America continued to improve as our U.S. modular sales reached an all-time record level.

"In addition, Bentley Prince Street experienced sales increases in carpet tile which, along with the impact of cost reduction initiatives, resulted in this business turning a profit for the quarter."

Third quarter operating income improved 48.2% to $28.0 million, or 11.1% of sales, compared to $18.9 million, or 8.7% of sales last year.

"We are optimistic about the impact that our recent capital allocation decisions will have on our business – in particular, our new carpet tile plant in China that is coming on line in the fourth quarter, and a planned roll-out of additional FLOR stores over the next year," said CFO Patrick C. Lynch.

For the first nine months were $696.5 million, compared with $629.0 a year ago, an increase of 10.7%.