Culp Inc. reports that net sales for its fiscal fourth quarter were $57.2 million, up 20% from the same period a year ago. Sales of mattress fabrics rose 26%. Upholstery sales increased 13%. Culp’s fiscal fourth–quarter 2010 ended May 2.
The High Point, N.C.–based supplier’s net income was $5.4 million, or $0.41 per diluted share, compared with net income of $1.7 million, or $0.13 per diluted share, in the prior–year period. A tax benefit of $0.4 million was recorded in the fourth quarter due to various factors, according to the company.
Specifically, in the mattress fabric segment, fourth–quarter sales were $33.4 million, a 26% increase, compared with $26.6 million for the prior year period.
“Our mattress fabrics business had a great fourth quarter, primarily driven by significant improvement in consumer demand in the bedding industry,” said Frank Saxon, Culp chief executive officer. “Additionally, we are benefiting from the closure of a key competitor in late calendar 2009. …During the fourth quarter, we completed the installation of state–of–the–art finishing equipment for our growing knit business. We are also in the process of further expanding our capacity for both knit and woven product lines.”
For fiscal 2010, Culp’s net sales were $206.4 million, up 1.2% over the prior year. Mattress fabric segment sales were even with the prior year while upholstery fabric sales were up 3.4%.
Net income was $13.2 million, or $1.01 per diluted share, compared with a net loss of $38.8 million, or $3.07 per diluted share, in the prior year.
In the first quarter of fiscal 2011, Culp projects overall sales will increase 11% to 16% over the same time in 2010. Mattress fabric sales are expected to be up 15% to 20% and upholstery fabrics sales are projected to rise 5% to 10%.
