13695 Fri, 02/01/2008 - 12:12pm
TRINITY, N.C.–In spite of significant incremental costs, Sealy enjoyed a 7.3 percent jump in its net income in 2007.
The company’s bottom line tallied $79.4 million last year, up from $74 million in 2006. According to a Sealy statement, the 2007 totals included $26.4 million in additional costs going to the company’s effort to comply with the U.S. Consumer Products Safety Commission’s new flame-retardancy standard for mattresses, which went into effect last July. Also, Sealy spent $6.4 million in additional advertising costs, took a $6.2 million charge related to customer bankruptcies and recorded an expense of $3.9 million for its organizational realignment in the United States. Sealy’s 2007 net sales gained 7.5 percent over 2006, finishing at $1.7 billion.
“In 2007, we executed well on key strategies, which we believe are going to be critical to our ongoing success,” said David McIlquham, Sealy’s chairman and chief executive officer. However, McIlquham also acknowledged that 2008 is expected to be a tough year for the company. “The difficult consumer spending environment combined with rising commodity cost pressures is expected to continue for the next few quarters,” he said.