Tempur-Pedic International Inc. a leading manufacturer, marketer and distributor of premium mattresses and pillows worldwide, announced preliminary financial results for the fourth quarter of 2009. The Company also provided initial financial guidance for 2010.
The Company currently expects fourth quarter 2009 sales to range between $242 and $244 million, representing growth of 28% to 29% as compared to the fourth quarter of 2008. The Company currently expects fourth quarter 2009 earnings per share (EPS) to range between $0.35 and $0.37 per diluted share.
The Company issued initial full year 2010 guidance for net sales and earnings per share. It currently expects net sales for 2010 to range from $950 to $970 million. It currently expects EPS for 2010 to range from $1.40 to $1.50 per diluted share. The Company noted its expectations are based on information available at the time of this release, and are subject to changing conditions, many of which are outside of the Company's control.
Chief Executive Officer Mark Sarvary commented, "Fourth quarter sales exceeded our prior expectations in both our US and International segments, primarily due to a better than expected macro environment together with success from sales and marketing programs. Throughout the recession, we have used the most recent volume levels as the basis for our plan for the next four quarters, and we have used the same methodology for 2010 sales guidance. While the macro environment continues to be very hard to predict, we have augmented this methodology with a comprehensive review of seasonality and market conditions across each of our major markets."
Chief Financial Officer Dale Williams commented, "In our planning for 2010, we expect benefits from our productivity programs and fixed cost leverage will be partially offset by our outlook for rising commodity prices and increased investments in marketing and R&D. As a result, we currently anticipate operating margin to expand 100 basis points or more for the full year in 2010."
About the Company
Tempur-Pedic International Inc. (NYSE: TPX) manufactures and distributes mattresses and pillows made from its proprietary TEMPUR(R) pressure-relieving material. It is the worldwide leader in premium and specialty sleep. The Company is focused on developing, manufacturing and marketing advanced sleep surfaces that help improve the quality of life for people around the world. The Company's products are currently sold in over 80 countries under the TEMPUR(R) and Tempur-Pedic(R) brand names. World headquarters for Tempur-Pedic International is in Lexington, KY. For more information, visit http://www.tempurpedic.com or call 800-805-3635.