Poor Carpet Cushion Sales Hurt Foamex Earnings
Linwood, PA, January 29, 2008— Foamex International, a major supplier of polyurethane foam, reported a $137,000 profit or 1 cent per share in the third quarter while sales fell 7.1%.
The company's profits were also hurt by a variety of one-time charges of $7.8 million.
Sales in the quarter totaled $290.8 million, down from $313.6 million a year ago, hurt substantially by falling carpet cushion sales. Net income a year ago was $7.4 million, or 77 cents per share.
Foamex said sales of carpet cushion fell 51%. Sales of automotive products, however, were up 33%.
CEO Jack Johnson said that debt reduction continues to be a primary focus for the company, as well as cost reduction and improving operating efficiency.
Foamex used improved free cash flow and asset sales to pay off $46 million in debt during the third quarter, leaving total debt of $564 million.
In the first three quarters, sales fell 8.6% to $905.5 million. Net loss was $9.3 million, or 44 cents per share.