Interface Swings to Fourth Quarter Profit

Atlanta, GA, Feb. 22, 2012 -- Carpet tile maker Interface, Inc. reported net income in the fourth quarter was $3.9 million, or $0.06 per share, compared with a net loss of $13.3 million, or $0.21 per share, in the fourth quarter of 2010.

Sales in the quarter were $270.9 million, compared with sales of $265.3 million in the fourth quarter of 2010, an increase of 2.1%.

Analyst Stifel Nicolaus said earnings and sales came in below its estimates

Interface took a restructuring charge of $6.2 million, or $0.06 per share after-tax.

"We are pleased to report increased sales for the year, though sales growth moderated in the fourth quarter, reflecting the continuation of challenging market conditions and a pause in demand as customers digested uncertain macroeconomic trends at the end of the year," said CEO Daniel T. Hendrix.

The company said that high raw materials prices and lower volume reduced the company's margins. Price increases for carpet tile, which gained traction later in the quarter, didn't offset the costs, Interface said.

For the full year 2011, sales were $1.1 billion, compared with $961.8 million in 2010, an increase of 9.9%.

"Looking ahead, 2012 represents a combination of opportunities and challenges," Hendrix said.

"We'll face some tough comparisons in the first half of the year, and we anticipate mature corporate office markets to remain choppy as customers are cautious about investing in the current macroeconomic environment."