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19th June 2013, High Point, NC

Culp relies on the specialty bedding sector

Reporting the 5.6% increase in  net sales from fiscal 2012, mattress and upholstery fabrics supplier Culp has shown  overall growth and the highest pre-tax income rate in 15 years as well as the highest return on capital (29%) since the company went public.

This, according to Frank Saxon, president and chief executive officer of Culp, is due to the company’s ability to sustain excellence in creating innovative fabrics. He explained that an increasing percentage of Culp’s sales are coming from introducing  new products.

Although the company has demonstrated a decrease in mattress fabric sales for the fourth quarter by $2.6 million, the fiscal year’s results show the 5.8% growth comparing to fiscal 2012. © Culp

With the Culp-Lava, Culp’s latest business venture, Iv Culp is also optimistic about the company’s growth capacities, outlining the company’s goals to capitalise on meeting demand for the fast growing specialty bedding sector of the mattress industry.

However,  quarterly results showed a decrease in net sales by 7% with mattress fabric sales down by 5.9% and upholstery fabric sales down by 8.6%, compared with an exceptionally strong fourth quarter last year.

Nevertheless, commenting on the results, Saxon said: “Rob Culp and I are very pleased to report one of the best years in the company’s history.”

Mattress Fabrics Segment

Although the company has demonstrated a decrease in mattress fabric sales for the fourth quarter by $2.6 million, the fiscal year’s results show the 5.8% growth comparing to fiscal 2012.

Commenting on that, Iv Culp, president of Culp’s mattress fabrics division, expressed his satisfaction with the numbers: “Notably, fiscal 2013 marked the highest annual sales level for this division in company history. These results reflect our focus on product innovation and the ability to maximise the efficiencies and flexibility of our manufacturing platform.”

He explained that the company’s focus is to respond to the customers’ needs and changing demand trends by offering the latest technologies, design expertise, production capabilities and exceptional service.

“The higher-end mattress segment has continued to demonstrate the strongest growth, as consumer trends indicate a greater number of purchases of better bedding with more of a tailored and upholstery-type look,” he added.

Upholstery fabrics segment

This segment has seen the similar changing patterns, as sales for it only reached $29.6 million for the fourth quarter, compared with sales of $32.3 million in the fourth quarter of fiscal 2012. As expected, those were affected by the Chinese New Year holiday, which fell entirely in the fourth quarter of fiscal 2013. As for the year, upholstery fabric sales totalled $114.8 million, a 5.4% increase compared with last year, which marks four consecutive years of sales growth.

“China produced fabrics have continued to be the key driver of our sales and accounted for approximately 90% of upholstery fabric sales this year,” noted Saxon.

He added: “While the overall economy has still presented some challenges for consumers, the housing market is starting to gain traction, which should have a positive influence on demand for the furniture industry.”

www.culpinc.com

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