LINWOOD, Pa.–Foamex reported a $48.8 million net loss in the first quarter of this year, up from the $17.6 million loss posted for the first quarter of 2007.
The company’s loss widened because of a 21 percent drop in sales in the quarter, which totaled $241.5 million; and because of a one-time charge of $38.5 million for goodwill impairment, according to Foamex’s 10-Q filing with the U.S. Securities and Exchange Commission. Foamex also posted a $34 million operating loss in the quarter, compared with $22.2 million in operating profit reported for the first quarter of last year.
The filing also said sales in the company’s foam-products segment fell 32 percent to $88.3 million in the quarter. The company attributed this decrease to “the loss of a significant customer (unnamed in the filing) and softness in demand in the bedding and furniture markets.” Sales of carpet cushion products plummeted 41 percent to $13 million, due to decreases in both sales volume and average selling prices.