Bedding major Tempur Sealy International said first-quarter sales fell 2.5% to $721 million, but profits jumped nearly 70% due to decreased commodity costs, improved operations and price increases.

The company said sales in North America fell 2.4% to $580 million due to disruption caused by major product launches and a bedding market that generally performed below expectations.

Net income was $39.6 million or 63 cents per share, compared with $23.4 million or 38 cents per share in last year’s first quarter. The comparable quarter included one-time costs of $8.3 million or 13 cents per share related to the company’s acquisition of Sealy Inc.

“We are very pleased with our results, as we grew adjusted EBITDA 15% and adjusted earnings per share 24% while increasing direct advertising and marketing investments, and launching new industry leading products worldwide,” said Chairman and CEO Scott Thompson. “Overall, plant operations improved and adjusted operating margin expanded 200 basis points. The team is focused on continuing to improve operations, and we are all striving to achieve our targets.”

Thompson said the company is sticking with financial guidance issued earlier this year that called for adjusted EBITDA of $500 million to $550 million.

(Source: Furniture Today)