Springs Global Posts $15.7 Million Net Loss in Q3
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MONTES CLAROS, Brazil--Springs Global reported a net loss of $15.7 million in its third quarter ending Sept. 30, reversing net income of $7.6 million from the third quarter of last year.
The drop in the bottom line occurred in spite of a 3 percent gain in net sales to $329.8 million, which was helped by the appreciation of the quarterly average conversion rate of the Brazilian real versus the U.S. dollar from the third quarter of 2009 to this year's third quarter. Using these conversion rates, however, selling expenses rose 18 percent from last year to this year, and Springs also experienced a 63 percent fall in the benefit it received from exchange-rate variations worldwide. These factors led to a 97 percent decline in operating income for the quarter.
In its statement discussing the quarterly results, Springs said a decrease in overall sales in North America offset strong sales gains in the Brazilian market. Looking at its separate product categories, fashion bedding worldwide posted a 7.4 percent sales increase in the quarter. However, the bath segment's sales fell 7 percent, and sales of utility bedding dropped 24 percent.