Natuzzi expect sales to drop

Natuzzi expect sales of Natuzzi branded upholstered furniture to decrease by 18.4% and sales of Italsofa, their promotional brand, to remain flat. In terms of seats sold, Natuzzi are anticipating a 13.1% decrease, with the Natuzzi brand selling 21% less units than the first quarter of 2004, with sales of Italsofa units increasing by 1.8%. The board have approved a new restructuring plan focusing on reducing manufacturing costs in Italy. This includes a temporary work force reduction of 1,320 workers by the end of 2005. Natuzzi are due to release their first quarter results today. Pasquale Natuzzi, CEO and chairman, said: 'After having carefully analysed the current situation and the unstable market outlook, we have decided to take further initiatives to control costs. Natuzzi is a solid company, but we have to act rapidly in order to be more competitive, recover profitability and regain market share especially in the medium-high end of the market where we are investing in the Natuzzi brand.'