Tempur-Pedic reports 3Q loss

ssloan@herald-leader.comOctober 23, 2012 

Lexington-based mattress maker Tempur-Pedic International reported a quarterly loss Tuesday, saying its results were dragged down by taxes paid to repatriate foreign earnings as well as costs related to its proposed acquisition of rival Sealy.

The company lost $2 million, or 3 cents a share, in the third quarter, down from a profit of $61.9 million, or 90 cents a share, in the same period a year ago. Factoring out the one-time costs, the company said it would have earned 70 cents per share in its most recent quarter.

Revenue fell 9 percent to $347.9 million from $383.1 million, as the company continues to cope with increased competition that led it to warn in early June that its second-quarter sales and profits would also be down.

That competition "continued to have an adverse impact," and the company's initiatives in response have been more expensive than estimated, CEO Mark Sarvary said in a statement.

"However, we are committed to returning to growth," he said.

In the quarter, mattress sales fell 11 percent globally, including 15 percent in North America, while rising 1 percent internationally.

Pillow sales jumped 11 percent globally, with a 5 percent increase in North America and 16 percent internationally.

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