14416 Wed, 05/07/2008 - 12:03pm
ATLANTA–The Simmons Co. today reported a 43 percent drop in profits for the first quarter ended March 29. Net income for the period was $2.5 million, down from $4.4 million during the same period a year ago.
Income per share was not reported.
The profit decline was based on a sales increase of 3.6 percent, to $276.9 million from $267.4 million in the year-ago period. The mattress company’s drop in income in the face of a revenue increase reflected gains in the cost of materials and in selling, general and administrative expenses.
Citing rising charges for raw materials and fuel, Charlie Eitel, chairman and chief executive officer, said the company has taken “significant measures to lower our overall cost structure,” and has imposed price increases on selected products, but that these measures would not bear fruit until the second and third quarters.
On a positive note, Eitel said, “Despite a very difficult retail and economic environment, we continued to gain market share in the U.S. during the first quarter.”