Tempur-Pedic sales soar in second quarter

Bedding maker Tempur–Pedic reported a 42% increase in net sales, to $263 million, in the second quarter of 2010, compared to the same period a year ago.

On a constant–currency basis, global net sales for the quarter increased 44%. North American net sales increased 58%; international net sales increased 10%. On a constant–currency basis, the international segment grew 14%.

Net income for the Lexington, Ky.–based company was $33.5 million in the second quarter, compared to $16.9 million in second–quarter 2009.

Tempur–Pedic’s pillow sales rose 16% globally—27% domestically and 7% internationally. On a constant–currency basis, international pillow sales increased 10%.

Gross profit margin for the period was 48.7%, compared to 46.6% in the second quarter of 2009.
The company said the increase was the result of reduced fixed costs attributable to higher production volumes and increased manufacturing efficiencies.

Tempur–Pedic’s operating profit margin was 20.5%, up from 15.7% in the second quarter of 2009. Operating cash flow totaled $44.5 million, an increase from $39.5 million during the same period in 2009.

The company recorded earnings of $0.46 per diluted share, compared with $0.22 in the prior–year period. During the second quarter of this year, Tempur–Pedic purchased 3 million shares of its common stock at an average price of $33.42 for a total cost of $100 million.

“We are very pleased with the continued substantial growth in our North American business and with the improved performance of our international business,” said Mark Sarvary, Tempur–Pedic chief executive officer. “Although the macroeconomic environment is still uncertain, we remain confident of the potential to significantly grow sales and earnings over the coming years.”

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