follow us

After restructuring, Culp turns a profit

High Point, N.C. -- Climbing back on track and helped by gains in its mattress ticking business, diversified fabrics producer Culp Inc. recorded a small second-quarter profit of $812,000 -- despite a continuing slide in sales. This reversed a year-before loss of $4.2 million stemming from a sweeping overhaul of operations.

Sales continued to decline, falling by 11.9%, to $59.0 million from $67.0 million last year. But paring costs and beefing up margins, Culp recorded a profit in both its mattress ticking and upholstery fabrics divisions. Sales of mattress fabrics trailed off by 2.1%, to $23.5 million, but helped by sales of higher-margin product, operating profit jumped up by 48.3% to $2.5 million from $1.7 million last year.

The core upholstery fabrics business continued to lose ground at the top line, sales falling off by 17.4%, to $35.5 million from $43.0 million last year, a shortfall of $7.5 million. But helped by cost cuts, layoffs and continued down-sizing, the business returned to profitability with a modest operating profit of $393,000, compared with a small year-before loss of $69,000.

Driving the second-quarter profit, the company slashed restructuring costs, putting up a $264,000 credit in this year's second quarter, compared with $4.4 million in restructuring costs a year ago. In another lift to the bottom line, average gross margin widened substantially, by 520 basis points, or 5.2 percentage points, to 13.5% from 8.3% last year. Costs were pared by 3.9% to $6.3 million, yielding a cash savings of $253,000.

Featured Video

  • Online Moves From Afterthought To Main Thought For Textiles Suppliers

    Camera Icon More Videos

Other Home Furnishings Sites

Casual Living
Gifts and Decorative Accessories
Home Accents Today
Kids Today
Furniture Today