Interface Third Quarter Earnings, Sales Fall

Atlanta, GA, Oct. 28, 2009--Interface, Inc. reported third quarter net income of $5.5 million, or $0.09 per share, compared with $8.4 million, or $0.13 per share, last year.

Sales were $218.4 million, compared to $278.4 million in 2008, a decline of 21.6%.

Approximately 3% of the sales decline was related to fluctuations in currency exchange rates relative to the year ago period. On a sequential basis, sales increased 3.3% over sales of $211.3 million in the second quarter.

"We saw steady sequential improvement in our business in the third quarter despite the challenging market conditions," said CEO Daniel T. Hendrix.

"Demand for modular carpet in the education, retail and government sectors held up well, offsetting in part the continuing softness in the corporate office segment. Geographically, our business in the Americas has been remarkably resilient, due primarily to our focus on non-office segments. Our business in Europe continued to struggle with the poor economy, but in an encouraging sign orders exceeded sales for the quarter."

For the first nine months of 2009, sales were $629.0 million, compared with $835.2 million for the same period a year ago, a decrease of 24.7%.

"While we will continue to face challenges in the upcoming months, the sequential trends in our business and our third quarter results provide a foundation for the opportunities that lie ahead. We continue to see a shift in the marketplace to carpet tile, and feel that by taking prudent actions during these challenging times, we remain well positioned to capitalize on it," Hendrix said.