Currency conditions affect Natuzzi results
Italian leather furniture manufacturer, Natuzzi, has reported a drop in sales for the fourth quarter and full year, due to “unfavourable currency conditions.”
Fourth-quarter 2004 net sales were €193.6 million ($ 251.5 million), a fall of 7.6% compared with the prior year's fourth quarter. During the same period, seats sold decreased by 7.8%. Annual net sales decreased 2.1% over 2003 to €753.4 million ($937.1 million), while seats sold slightly increased by 0.4%.
Pasquale Natuzzi, chairman and CEO, commented: "Unfavourable currency conditions and the persistent pricing pressure affecting the US market in particular, generated a decrease in furniture demand for our company, which
turned into lower orders and sales during the entire fourth quarter".
However, Mr. Natuzzi forecast a more positive future for the company, stating: "In consideration of the positive reception accorded by our clients to the new collections introduced at the recent trade exhibitions and the further expansion and improvement of the sales performance of our stores and galleries, we expect to reverse in the second half of the year the decrease of sales which is likely to be reported in the first half of 2005, due to the negative order flow over the last few months. As a result, we should increase seats sold by about 5% on an annual basis."
