Culp Announces Revised Expectations For Fourth Quarter Fiscal 2010
Culp, Inc. (NYSE: CFI), today announced that, based on unaudited preliminary results, overall sales for the fourth quarter of fiscal 2010 ending May 2, 2010, are now expected to be up 20 percent over the fourth quarter of fiscal 2009. Mattress fabrics segment sales are expected to be up 26 percent and upholstery fabrics segment sales are expected to be up 13 percent over the prior year period. These projected results compare with previously announced expectations of a 12 to 16 percent sales increase for the company as a whole, with a projected increase of 10 to 14 percent for mattress fabrics and 13 to 17 percent for the upholstery fabrics segment. The company currently expects pre-tax income to be in the range of $4.7 to $5.1 million for the fourth quarter. These projected results are higher than the company’s previously announced expectation of $3.5 to $4.2 million in pre-tax income for the quarter. The company also expects that the effective income tax rate for the fourth quarter of fiscal 2010 will be substantially lower than the year to date rate as of January 31, 2010, due to various factors.
Commenting on the announcement, Frank Saxon, president and chief executive officer of Culp, Inc., said, “Our projected financial results for the fourth quarter reflect better sales growth than anticipated in our mattress fabrics business, driven by significantly improved consumer demand in the bedding industry. While we have continued to see favorable growth trends in our upholstery fabrics business, we believe consumer demand for furniture was not as strong as for bedding during the quarter. Overall, we are very pleased with the progress we made in the fourth quarter and in fiscal 2010. Looking ahead, although we are optimistic about the outlook for the bedding and furniture industries, we are beginning to experience higher raw material costs in both segments and increased pricing pressure in our mattress fabrics business.”
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