The Board of Directors of Natuzzi S.p.A. (NYSE:NTZ), Italy’s largest furniture manufacturer and world’s leading manufacturer of leather-upholstered furniture, today approved its financial results for the first quarter of 2011.
- Total Net Sales were €121.0 million, down 4.3% as compared to first quarter 2010
- Industrial Margin was €42.8 million as compared to €48.7 million in first quarter 2010
- Negative EBIT of €2.5 million, vs. a positive EBIT of €0.5 million in first quarter 2010
- Net Group Loss of €3.0 million vs. a Net Group Loss of €1.3 million in first quarter 2010
- Positive Net Financial Position of €74.9 with a considerable improvement as compared to December 31, 2010.
Total Net Sales (including raw materials and semi-finished products sold to third parties) were €121.0 million, decreasing by 4.3% with respect to 2010.Total upholstery sales totalled € 105.4 million with a decline of 5.3% over the same period in 2010.
The break-down of upholstery net sales by geographic area was as follows: Europe (excluding Italy) 49.5%, the Americas 26.1%, Italy 14.1% and Rest of the World 10.3%.The best commercial performances were reported in the Rest of the World area with an encouraging increase of 16.1%. In particular evidence, China has nearly tripled its sales of Natuzzi branded products. A return to a positive performance in Europe with 3.6% was noted. In particular, a recovery of sales of the Natuzzi branded products in Germany (+11.0%) and in Great Britain (+12.0%) was recorded. By contrast, Sales in North America still suffer from the persistent non favourable economic environment.
Industrial margin, 35.4% of sales compared to 38.5% in the first quarter of 2010, mainly reflects the considerable increase in the prices of raw materials.Further rationalization of the selling and administrative costs (SG&A) allowed an improvement on net sales from 22.1% in first quarter 2010 to 21.4% in first quarter 2011.