Natuzzi`s sales fall 13.1% in Q1
Italian manufacturer of leather-upholstered furniture Natuzzi S.p.A. saw a drop of 13.1% in net sales to €166.6 million ($218.4 million) in the first quarter of 2005 ended March 31 compared with €191.8 million ($240.0 million) reported in the first quarter of 2004. The company also recorded net losses of €3.5 million compared with net earnings of € 9.4 million in the first quarter of 2004.
Net upholstery sales were €146.4 million, down 13.6% from €169.5 million reported in last year's first quarter. Other sales (principally living-room accessories and raw materials produced by the company and sold to third parties) decreased 9.4% to €20.2 million.
In the first quarter of 2005, leather-upholstered furniture sales decreased by 12.8% to €120.4 million and fabric-upholstered sales by 17.5% over last year's quarter to €26.0 million.
Pasquale Natuzzi, chairman and CEO, commented, “The overall scenario in which the company is operating is still characterised by the same mix of unfavourable factors that have negatively impacted our sales and order flow over the past months: furniture demand softening in all major markets and aggressive price competition deriving from low-cost countries located in Eastern Europe and China that is even more competitive compared with the Italian production thanks to the fixed currency rate with the US Dollar."
