Foamex Announces First Quarter 2008 Sales Decrease

Furniture World News

Foamex International Inc. announced results for the first quarter ended March 30, 2008. Commenting on the results, Jack Johnson, President and Chief Executive Officer, said, “While the deterioration of the U.S. economy continues to impact our volumes, we remain focused on our efforts to reduce costs, streamline operations, and develop new products, markets and channels in order to position the Company for future growth.” Net sales for the first quarter were $241 million, down from $306 million in the first quarter of 2007. The decrease was primarily driven by lower sales volumes across all segments and lower average selling prices in the Carpet Cushion segment. Gross profit was $21.2 million, or 9%, compared to $39.7 million, or 13%, in the first quarter of 2007. Loss from operations was $34.0 million for the 2008 first quarter and included a goodwill impairment charge of $38.5 million, compared to income from operations of $22.2 million in the first quarter of 2007. Net loss for the first quarter was $48.6 million, or $2.05 per diluted share, compared to a net loss of $17.6 million, or $1.04 per diluted share, in the first quarter of 2007. As previously announced, on April 22, 2008, D. E. Shaw Laminar Portfolios, L.L.C., Goldman, Sachs & Co., and Sigma Capital Associates, LLC purchased shares of Series D Preferred Stock of the Company resulting in proceeds of $18.5 million to assist the Company in meeting its financial covenants. About Foamex International Inc.: Foamex, headquartered in Linwood, PA, is a leading producer of polyurethane foam-based solutions and specialty comfort products. The Company services the bedding, furniture, carpet cushion and automotive markets and also manufactures high-performance polymers for diverse applications in the industrial, aerospace, defense, electronics and computer industries. For more information visit the Foamex web site at http://www.foamex.com.