Interface Revenue up 3.9% in FY 2017; 11.1% in Q4
LaGrange, GA, February 22, 2018-Interface has reported net sales of $266.2 million for Q4 2017, compared to $239.5 million in Q4 2016. For the quarter, Interface reported net income of $4.3 million, compared to $4.7 million in the prior year period.
For the fiscal year, Interface reported sales of $996.4 million, compared to $958.6 in the prior fiscal year. Net income for fiscal year 2017 was $53.2, compared to $54.2 in fiscal year 2016.
Stifel provides a forward-looking perspective, “After reporting 5% organic growth in 2017, management expects organic growth to be 3% to 5% in 2018. We estimate there will be about another 2% tailwind from foreign exchange. The core gross margin business is expected to improve 50 bps to 100 bps and be partially offset by 25 bps from the exiting of the FLOR business; productivity and pricing initiatives are expected to benefit gross profit by $20 million and be partially offset by $10 million to $12 million of inflation. The company has planned for wage and raw materials increases and is shielded in the U.S. from transportation costs as the customers are largely responsible for freight. Both carpet and LVT products are improving with organic orders up 8% in the fourth quarter and 6% in 2017 with the benefit being fairly equally split. December was weak and January was choppy due to the weather in the U.S. but management said the average for the first seven weeks in the quarter has been about 8% to 8.5% order growth. The company plans to introduce a new LVT product in the second half of the year.”