Specialty bedding producer Tempur-Pedic reported its net sales increased 28% to $1.4 billion in 2011 from $1.1 billion in 2010.
Looking at results for the year, the Lexington, Ky.-based company reported net sales increased 25% on a constant-currency basis. Net sales in the North American segment climbed 30% and international segment net sales rose 24%. On a constant-currency basis, international segment net sales increased 16%.
Earnings were $3.18 per diluted share for 2011, up from $2.16 per diluted share for 2010. Tempur-Pedic reported net income of $219.6 million in 2011, as compared with net income of $157.1 million in 2010.
Gross profit margin was 52.4% in 2011, compared with 50.2% in 2010. The company attributed the gain to a favorable product mix, improved efficiencies in manufacturing and distribution, and fixed-cost leverage related to higher production volumes. Gains were partially offset by higher commodity costs, new product introductions and costs associated with U.S. shipments to support the company’s Danish manufacturing facility.
Tempur-Pedic’s operating profit margin for the year was 24%, compared with 22.2% for 2010. The company generated $248.7 million of operating cash flow in 2011, up over $184.1 million in 2010.
“In 2011, we delivered strong financial performance, strengthened our competitiveness and implemented a range of strategic growth initiatives,” said Mark Sarvary, Tempur-Pedic chief executive officer.
Looking at fourth-quarter figures, sales rose 25% to $366.8 million from $292.7 million during the same period in 2010. Net sales in North America jumped 26% and international net sales increased 25%. On a constant-currency basis, international segment net sales rose 21%.
Earnings per diluted share were $0.84 in the fourth quarter of 2011, compared with $0.66 per diluted share in fourth-quarter 2010. Tempur-Pedic reported net income of $56.3 million, up over $46.3 million during the same period in 2010.
Mattress sales increased 26% globally—up 24% in the North American segment and up 33% in the international segment. On a constant-currency basis, international mattress sales surged 29%. Pillow sales rose 16% globally—up 15% in North America and 17% internationally. On a constant-currency basis, international pillow sales grew 13%.
Gross profit margin was 52.1%, virtually unchanged from 51.9% in fourth-quarter 2010. Operating profit margin was 23.4%, down from 24.5% in fourth-quarter 2010.
In 2012, Tempur-Pedic expects net sales to range from $1.6 billion to $1.65 billion and earnings to range from $3.80 to $3.95 per diluted share.
“Over the next year, we plan to increase our rate of investment in areas that will drive growth, including a major new product launch, increased advertising and expanded distribution,” Sarvary said.
