Interface Reports Higher Sales, Flat Earnings

Atlanta, GA, Oct. 27, 2011 -- Interface reported third quarter net income of $12.2 million, or $0.19 per share, compared with net income of $12.1 million, or $0.19 per share, in the third quarter of 2010.

Sales for the third quarter were $273.1 million, compared with $252.7 million a year ago.

Operating income was $25.3 million, or 9.3% of sales, compared with last year's third quarter operating income of $28.0 million, or 11.1% of sales.

"During the quarter, we increased our sales and grew our overall global presence in the face of changing market conditions and strong year-ago comparisons," said CEO Daniel T. Hendrix.

"Sales growth remained solid in emerging markets, and our U.S. modular carpet business produced record revenues for the quarter, with the corporate office and institutional segments showing particular strength.

"Demand slowed in some of our mature corporate office markets outside the U.S., such as Australia, Japan and the larger parts of Western Europe.

"The quarter also saw a significant increase in raw materials pricing that was felt across our geographies which, combined with moderating sales volumes in the select markets I mentioned, affected our gross profit in the period."

Bentley Prince Street continued to generate near breakeven results despite a decline in sales, Hendrix said, while the Flor retail business achieved a double-digit percentage increase in quarterly sales.

For the first nine months of 2011, sales were $786.1 million, compared with $696.5 million for the same period a year ago, an increase of 12.9%.