Sales slip at Natuzzi
Sales at Italy’s largest furniture manufacturer Natuzzi S.p.A. slipped significantly in the third quarter due to what the company’s CEO, Pasquale Natuzzi, termed as “weak business conditions in most major markets” and particularly in the USA.
For the third quarter total net sales fell 10.9% to €141.3 million and the volume of seats sold declined 13.5% to 594,888, resulting in an operating loss of €11 million, versus a loss of €1 million in the same period in 2006.
Net sales in the Americas decreased significantly, falling 19% to €48.7 million, sales in Europe slipped 6.1% to €64.6 million and sales in the rest of the world declined 8.4% to €12 million.
On a slightly more positive note, the majority of the losses were seen at the company’s fabric upholstery division where net sales fell 35.5%, whilst net sales of leather upholstery only fell 8.2% to €113.3 million.
For the first nine months total net sales decreased 15.7% to €457.5 million from €542.4 million.
“The persisting unfavourable level of euro exchange rates against major currencies, the US dollar first of all, marketing investments not completely absorbed by current production volumes, the strong revaluation of the Brazilian currency against US$ which has negatively affected the competitiveness of our manufacturing operations in the South American country, and the upward pressure in the raw material market, have all contributed to the quarterly unsatisfactory results,” said Mr Natuzzi.
