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 announced its financial results for the second quarter and first six months of 2010.

  • Upholstery Net Sales were €130.9 million, up 12.0% as compared to the second quarter of 2009
  • Total Net Sales were €145.2 million, up 8.7% as compared to the same period of 2009
  • Industrial margin was €54.6 million, versus €50.5 million recorded in the second quarter of 2009
  • Operating Income was €2.2 million, as compared to €1.1 million for the same period of 2009
  • Net group loss was €2.8 million versus a loss of €3.9 million recorded in the same quarter of 2009
  • Positive net cash position of €49.0 million

Second Quarter Results 2010

Total Net Sales (including raw materials and semi-finished products sold to third parties) were €145.2 million, an increase of 8.7% as compared to corresponding period of 2009.

Upholstery net sales were €130.9 million, up 12.0% as compared to the same period of 2009.

The contribution to upholstery net sales by geographic area was as follows: Europe (excluding Italy) 40.1%, Americas 37.4%, Italy 10.0% and Rest of the World 12.5%.

The major commercial performances came from North America (+38%), Asia-Oceania (+42%) and Great Britain (+49%).

Industrial margin was €54.6 million, showing an increase of 8.1% versus the same quarter of 2009. The increase of volumes sold and the major internal efficiencies enabled the group to offset the consequences of significant increases in raw material costs, in particular leather.

Transportation costs were negatively influenced by a significant increase in freight fares.

At the same time, an increase in terms of sales commissions was recorded due to the better performance in terms of sales in those geographical areas operated by some sales agents who are compensated through commissions on turnover