Springs Global Posts Black Bottom Line in Third Quarter
MONTES CLAROS, Brazil-Springs Global reported net income of $7.6 million in the third quarter, reversing a $34.4 million net loss in the third quarter of last year.
The company managed this in spite of a 13.9 percent drop in net sales, which totaled $322.7 million in the quarter. A Springs statement on the financial results said its bottom line received a major boost from net currency-exchange variations, which resulted in a gain of $12.8 million in the 2009 third quarter versus a loss of $44.7 million in last year's third quarter. In addition, the company's cost of goods sold decreased by 15.6 percent, and it was able to slim down general and administrative expenses by 6.3 percent. These factors helped offset a 33.9 percent jump in selling expenses.
The company's third-quarter sales were hit by the continuing economic difficulties in North America, which offset what Springs described as "a significant increase in sales volume of bed and bath home furnishing products in Brazil." Net sales in its fashion-bedding segment fell 30.6 percent in the third quarter, while the bath segment experienced a 22.2 percent decrease. In utility bedding, net sales fell 12.1 percent.