CULP REPORTS FIRST QUARTER SALES AND EARNINGS
CULP REPORTS FIRST QUARTER SALES AND EARNINGS HIGH POINT, N.C. Sept. 11 /PRNewswire/ -- Culp, Inc.
(NASDAQ-NMS: CULP) today reported higher sales and net income for the first quarter of its 1993 fiscal year.
For the three months ended August 2, 1992, Culp reported net sales of $45,782,000 compared with $40,821,000 in the first quarter of fiscal 1992. Net income for the most recent quarter totaled $602,000, or $0.10 per share, versus $389,000, or $0.07 per share, in the year- earlier period. The earnings per share for the first quarter of fiscal 1992 have been adjusted to reflect the 30% stock dividend distributed in July 1992. Robert G. Culp, III, chief executive officer, said, "The higher sales for the first quarter reflect a continuation of the strength in incoming orders that we experienced in the latter part of fiscal 1992. We attribute these gains primarily to the success of the strategic actions taken to build Culp's basic competitive position. We are making further progress in expanding our customer base as well as in increasing shipments to many existing accounts. We are benefiting in particular from additional growth in our exports of upholstery fabrics. Culp noted that, as previously reported, the company adjusted the estimated useful lives of certain depreciable assets at the start of fiscal 1993 to conform more closely with practices in the textile industry. This change increased net income for the first quarter by $243,000, or $0.04 per share, compared with a year ago. He remarked, "Our operating margins for the first quarter remained below the levels that we believe Culp can attain. A key factor restricting our profitability remains the competitiveness within the home furnishings industry. "Although no immediate change appears likely in the sluggish trend in overall consumer spending on furniture, Culp's strong financial condition is allowing us to make the ongoing investments necessary to establish the company as a consistent leader in the design and manufacture of fabrics. The capital spending plans now in place for fiscal 1993 include completion of several modernization projects relating to our equipment and facilities as well as the further implementation of new information systems within our organization. These expenditures are designed to enhance Culp's productivity and to enable us to deliver the highest measure of customer service." Culp, Inc. is a leading manufacturer and marketer of fabrics for the furniture, bedding and institutional furnishings markets. The company's common shares are traded on the National Market System under the NASDAQ symbol CULP. CULP, INC. Condensed Financial Highlights (Unaudited) Three Months Ended 8/2/92 7/28/91 Net sales 45,782,000 40,821,000 Net income 602,000 389,000 Net income per share 0.10 0.07 -0- 9/11/92 /CONTACT: Frank Saxon, Vice President and Chief Financial Officer, Culp, Inc., 919-888-6266/ (CULP) CO: Culp, Inc. ST: North Carolina IN: TEX SU: ERN
JZ -- CH005 -- 8490 09/11/92 13:05 EDT
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|Date:||Sep 11, 1992|
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