CULP REPORTS RECORD SECOND QUARTER SALES AND EARNINGS; EARNINGS PER SHARE INCREASE 22%.HIGH POINT, N.C.--(BUSINESS WIRE)--Nov. 6, 1996--Culp, Inc. (Nasdaq/NM:CULP CULP Caribbean University Level Programme ) today reported sales and earnings for the second quarter and first half of its 1997 fiscal year. For the three months ended October October: see month. 27, 1996, Culp reported that net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 16% to $105.2 million compared with $90.7 million a year ago. Net income for the quarter increased 24% to $3.7 million, or $0.33 per share, compared with $3.0 million, or $0.27 per share, in the second quarter of fiscal 1996. The gains for the second quarter brought net sales for the first half to $195.7 million, up 20% from $163.0 million in the first six months of fiscal 1996. Net income for the first half was $5.9 million, or $0.52 per share, up 31% from $4.5 million, or $0.40 per share, in the year-earlier period. "This marks the 16th consecutive quarter in which we have reported higher earnings versus the comparable year-earlier period," remarked Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. G. Culp, III, Chief Executive Officer. "We had started fiscal 1997 on a strong note in the first quarter, and these gains mark a continuation of that positive momentum in our business. Demand for our upholstery upholstery, general term for household fittings, hangings, curtains, cushions, and covers. It refers to stuffed, padded, and spring-cushioned furniture, such as chairs and sofas, or to the usually decorative materials and fabrics that cover them. fabrics has been generally strong in each of our major product categories, and shipments of mattress ticking ticking a coat color pigmentation pattern in which hairs of one color are distributed in small groups throughout the background color, e.g. Australian cattle dog. Called also speckling. are also up. We are continuing to realize significant growth in international sales which rose 32% for the quarter. Our business with U.S.-based customers increased 12% from a year ago, reflecting our success in supplying more of the fabric needs of current accounts as well as achieving a broadening in our customer base." Culp noted, "We are particularly pleased that the growth in sales is being accompanied by an improvement in profitability. Our goal of delivering more value to customers has meant a considerable investment of funds in expanding and modernizing our manufacturing resources. We are also broadening our use of computer-aided design computer-aided design (CAD) or computer-aided design and drafting (CADD), form of automation that helps designers prepare drawings, specifications, parts lists, and other design-related elements using special graphics- and calculations-intensive equipment, and related internal systems, to develop new patterns. Earning a reasonable return on this additional invested capital is essential for us to continue providing new fabrics and innovative designs with consistently high quality and service. A principal factor which has aided our margins has been the increased volume which has led to higher productivity and greater economies of scale at our manufacturing facilities. We have also benefited from a shift in our product mix toward fabrics with higher margins. "Our financial position remains one of the strongest in the textile textile Any filament, fibre, or yarn that can be made into fabric or cloth, and the resulting material itself. The word originally referred only to woven fabrics but now includes knitted, bonded, felted, and tufted fabrics as well. industry. Aided by the internally generated funds available from operations, we are maintaining an aggressive capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. program. We have recently increased our capital spending plans for fiscal 1997 to approximately $21 million. The thrust of this additional investment, which would represent the highest annual amount in Culp~s history, will be on expanding capacity as well as taking advantage of opportunities to become more vertically integrated to reduce costs and improve our flexibility to respond to customers' needs." Culp, Inc. is a leading manufacturer and marketer of fabrics for the furniture, bedding and institutional furnishings furnishings the extra type or quantity of hair on the head, tail, ears or legs, specified for a particular breed. For example, the feathers in setters, the beard in Bearded collies, the eyebrows in Schnauzers. markets. -0-
CULP, INC.
Condensed Financial Highlights
(Unaudited)
Three Months Ended
October 27, October 29,
1996 1995
Net sales $105,204,000 $90,672,000
Net income $ 3,710,000 $ 3,000,000
Earnings per share $ 0.33 $ 0.27
Six Months Ended
October 27, October 29,
1996 1995
Net sales $195,733,000 $163,029,000
Net income $ 5,920,000 $ 4,515,000
Earnings per share $ 0.52 $ 0.40
CONTACT: Culp, Inc., High Point Frank Saxon Saxon Any member of a Germanic people who lived along the Baltic coast in ancient times and later migrated west as far as the British Isles. The Saxons became pirates in the North Sea during the decline of the Roman empire, and in the early 5th century they spread through , 910/888-6266 |
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