MONTES CLAROS, Brazil–Springs Global narrowed its net loss in the third quarter to $29.5 million, down from the third-quarter net loss of $44.5 million posted last year (based on the currency conversion rates at the end of each quarter).
The company was able to slim down its costs during the quarter, resulting in a gross profit gain of 9.5 percent and operating income of $6 million, as opposed to the operating loss of $12.5 million in the third quarter of 2007. Springs reduced its selling, general and administrative expenses by 26.5 percent in the quarter to $40.2 million; and hacked 29.5 percent off its cost of sales, to $316.9 million.
Third-quarter net sales totaled $303.1 million, down 41.5 percent from the third quarter of last year. A Springs Global statement said the economic environment in the United States, the company’s largest market, deteriorated further in the third quarter. Consumer spending was considerably off, resulting in negative same-store sales results from retailers.