Natuzzi positive first quarter results

On release of the company's first quarter results, Pasquale Natuzzi, chairman and chief executive officer, commented: 'After a difficult year in which the company reported net losses for the first time ever, the company is back to profitability as a result of the restructuring actions we have been implementing since June 2005 - namely, a more efficient cost management and the closing of non-performing retail units - together with more favourable currency conditions in the period'. He added 'First quarter 2006 results confirmed the recovery in sales, particularly consistent in Europe, although the economic and currency scenario in which the company has been operating remains unfavourable as a whole.' Natuzzi, a major manufacturer of leather-upholstered furniture, have achieved a positive start to 2006. In the first quarter, Natuzzi total net sales increased by 13% to € 188.2 million as compared to € 166.6 million for first quarter 2005. During the same period total seats sold increased by 6.1% and net upholstery sales were at €167.4 million, up 14.3% from € 146.4 million in the same period of 2005. In the first quarter of 2006 net sales in the Americas were €63.8 million, up 6.5% from the previous year. In Europe sales totalled €92.9 million, up 21.1% while in the rest of the world net sales were up 9.2% at € 10.7 million. In the same period, total net sales to the company's chain of Divani & Divani by Natuzzi stores as well as Natuzzi Stores were at € 34.2 million, up 14% on the same quarter of 2005. During the same quarter six new stores were opened (two in France and one each in Croatia, Russia, Poland and Australia), whereas sixteen stores were closed (nine in UK, four in Italy, two in Greece, and one in Lebanon), thus bringing the total number of stores operating to 280. Leather-upholstered furniture sales in the first quarter 2006 were at € 143.4 million, 19.1% up from last year's first quarter, whereas over the same period fabric-upholstered furniture decreased by 7.7%, accounting for € 24 million. Natuzzi's gross profit in the first quarter was € 64.5 million, 17.1% up from € 55.1 million, reported one year earlier.