Upholstered furniture maker Natuzzi SpA (NTZ) Thursday reported a narrower first quarter loss on lower expenses, while sales plummeted 37% owing to declining demand, amid economic crisis.
First quarter loss of Natuzzi narrowed to EUR 10.4 million or EUR 0.19 per share from EUR 23.4 million or EUR 0.43 per share in the same quarter a year ago. In US dollars terms net loss of Natuzzi was $13.5 million or $0.2 per share, compared to net loss of $30.5 million or $0.6 per share in the year-earlier quarter.
Net sales for the quarter plunged to EUR 111.3 million or US$144.9 million from EUR 172.8 million or US$225 million in the prior-year quarter.
On a segmental basis, net sales of Natuzzi's Upholstery plummeted 37% to EUR 96.9 million, with a 24.7% decline in other sales at EUR 14.4 million.
Gross profit of the group was EUR 28.4 million, down 35.6% as compared to EUR 44.1 million in the same quarter last year.
Pasquale Natuzzi, chief executive officer said, "The furniture industry continues to be under pressure due to a challenging economic environment; as a result, we were unable to increase gross profit due to the decline in net sales although deleveraging was partially offset by a significant reduction in production costs."
Due to lower purchasing and labor costs, total cost of sales decreased 35.6% to EUR 82.9 million from EUR 128.7 million in the comparable quarter last year. Selling, general and administrative expense declined 20% to EUR 45.0 million.
Operating loss was EUR 16.6 million, compared to operating loss of EUR 12.1 million in the year-earlier quarter.
Natuzzi also said it ended the first quarter of 2009 with no debit and a cash of EUR 65 million, up EUR 18 million as compared to the end of 2008.
NTZ is currently trading at $2.00, up $0.01 or 0.50%, on the NYSE.
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