Sealy Corporation (NYSE: ZZ – News), the largest bedding manufacturer in the world, today announced results for its third quarter of fiscal 2008.

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Net sales for the fiscal quarter ended August 31, 2008 decreased 9.3% to $405.0 million compared to the same period in the prior year. Net income for the third quarter was $10.9 million or $0.12 per diluted share versus $21.5 million or $0.22 per diluted share for the comparable period last year.

Total domestic net sales for the third quarter of 2008 were $296.1 million compared to $335.1 million in the third quarter of 2007. Wholesale domestic net sales, which exclude third party sales from Sealy’s component plants, were $289.0 million, compared to $330.9 million in the third quarter of 2007, as a 3.3% increase in Average Unit Selling Price (AUSP) was offset by a 15.5% decline in unit volume. Wholesale domestic unit volumes were affected by weak retail demand. Sales of the Company’s new Posturepedic and Smart Latex(TM) product lines and Sealy-branded products outperformed the rest of the U.S. portfolio.

International net sales decreased 2.2% from the third quarter of 2007, or 8.3% excluding the effects of currency fluctuation, to $108.9 million. A deteriorating retail environment in Canada and Europe were partially offset by sales gains in Mexico and Argentina.

Larry Rogers, Sealy’s President and Chief Executive Officer, stated, “Sealy’s third quarter performance once again demonstrated our ability to positively impact our results despite ongoing challenges in the retail environment and heightened cost inflation. We completed the rollout of our new Posturepedic line during the quarter, which continued to gain traction and was a key driver of our results. The improvement in our sales of this product line above the $1,000 price point is helping us gain share in this key portion of the market, while the strength of the Posturepedic line below $1,000 helped us to successfully implement a July price increase on our mattresses in this price band. We also continued to make progress during the third quarter on reducing our cost structure and effectively managing working capital.”

“Although we expect increased market weakness and cost pressures in the near term to continue, we will keep managing those areas of our business that we can control and focus on executing against our strategic operating initiatives. We are confident that the actions we are taking will allow us to emerge as a leaner organization with improved earnings potential when the market turns,” Mr. Rogers concluded.

Third quarter gross profit was $164.1 million, or 40.5% of net sales, versus 40.3% of net sales for the same quarter in fiscal 2007. This increase in gross margin was primarily due to price increases implemented since December 2007, a favorable mix shift towards higher end products in the Company’s new Posturepedic line, continued improvements in manufacturing efficiencies and lower sales discounts on floor samples versus the comparable period in the prior year due to an accelerated rollout of the new line. These factors were partially offset by an increase in material costs, including inflation on steel and foam, deleveraging of overhead expense on lower volumes and a pre-tax charge of $1.4 million related to the Company’s exit of the air bed business. Internationally, gross margins declined primarily due to deleveraging of manufacturing expenses on lower volumes.

Selling, general, and administrative (SG&A) expenses were $132.9 million, a decrease of $7.2 million versus the comparable period a year earlier. As a percentage of net sales, SG&A expenses were 32.8% in the third quarter of 2008 compared to 31.4% in the third quarter of 2007. The reduction in the amount of SG&A expenses is primarily due to a $6.3 million decline in volume-driven variable expenses. In addition, the Company benefited from the implementation of cost saving initiatives which generated a $5.3 million decline in fixed expenses. Actions taken to reduce costs in the third quarter of 2008 included a reduction in promotional expenses due to a more efficient new product launch, decreases in salary and fringe benefit-related costs, and reduced spending on professional services and other discretionary items. These were partially offset by an increase in advertising costs related to the launch of the Company’s national advertising program.

During the three months ended August 31, 2008, the Company also recorded a $2.4 million restructuring charge related to the closure of select Company facilities.

Net sales for the nine months ended August 31, 2008 decreased 7.0% to $1,172.3 million from $1,260.8 million for the comparable period a year earlier. Gross profit was $465.7 million, or 39.7% of net sales, versus $529.7 million, or 42.0% of net sales, for the comparable period a year earlier. Net income was $39.1 million or $0.42 per diluted share versus net income of $62.2 million or $0.64 per diluted share for the comparable period a year earlier.

As of August 31, 2008, the Company’s debt net of cash was $748.9 million, a reduction of $42.7 million compared to debt net of cash as of the quarter ended August 26, 2007.

EBITDA and Adjusted EBITDA

Within the attached schedules, Sealy provides information regarding EBITDA and Adjusted EBITDA which are not recognized terms under GAAP (Generally Accepted Accounting Principles) and do not purport to be alternatives to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Additionally, they are not intended to be measures of available cash flow for management’s discretionary use, as they do not consider certain cash requirements such as interest payments, tax payments and debt service requirements. Because not all companies use identical calculations, these presentations may not be comparable to other similarly titled measures of other companies. A reconciliation of EBITDA and Adjusted EBITDA to the Company’s cash flow from operations is provided in the attached schedule.

Conference Call

The Company will host a conference call and audio webcast with investors, analysts and other interested parties today at 5:00 P.M. Eastern time. The live call can be accessed by dialing (888) 259-8544, or for international callers, (913) 312-0636. Participants should register at least 15 minutes prior to the commencement of the call. A replay will be available one hour after the call and can be accessed by dialing (888) 203-1112, or for international callers, (719) 457-0820. The passcode for the replay is 9824220. The replay will be available until October 14, 2008.

Additionally, a live audio webcast will be available to interested parties at www.sealy.com under the Investor Relations section. Participants should allow at least 15 minutes prior to the commencement of the call to register, download and install necessary audio software. The on-line replay will be available for a limited time beginning immediately following the call.

About Sealy

Sealy is the largest bedding manufacturer in the world with sales of $1.7 billion in 2007. The Company manufactures and markets a broad range of mattresses and foundations under the Sealy®, Sealy Posturepedic®, Stearns & Foster®, and Bassett® brands. Sealy operates 26 plants in North America, and has the largest market share and highest consumer awareness of any bedding brand on the continent. In the United States, Sealy sells its products to 2,900 customers with more than 7,000 retail outlets. Sealy is also a leading supplier to the hospitality industry. For more information, please visit www.sealy.com .

Lighting Science Group Corporation, a developer and integrator of intelligent LED lighting solutions, today announced that on October 7, 2008, the Superior Court of California for Sacramento County issued a preliminary injunction against Philips Solid State Lighting Solutions, Inc., Koninklijke Philips Electronics N.V. and Philips Electronics North America Corporation (collectively “Philips”) preventing Philips from using or relying on certain confidential or trade secret information obtained from LSG. In granting the motion for a preliminary injunction sought by LSG, the court found that LSG was “likely to prevail on the merits” in its action pending against Philips. The action began in March 2008 when LSG filed a complaint in the Superior Court of California for Sacramento County alleging, among other things, that Philips had misappropriated confidential information and engaged in unfair trade practices.

About Lighting Science

Lighting Science Group Corporation (www.lsgc.com) innovates, designs, manufactures and markets LED lighting solutions for professional and consumer applications that are environmentally friendlier and less costly to operate than traditional lighting products. The Company’s patented and patent-pending designs in power management, thermal management, light engines, controls and micro-electronics are engineered to enhance lighting performance, reduce energy consumption, lower maintenance costs and eliminate the use of hazardous materials. The company is at the forefront of global LED research and product development and designs and manufactures ready-to-use LED lamps and luminaires, as well as provides customized lighting solutions for architectural and artistic projects. Lighting Science has offices in New York, New York; Westampton, New Jersey; Sacramento, California; Satellite Beach, Florida; Dallas, Texas; Tokyo, Japan; Goes, The Netherlands; Buckinghamshire, England; and Sydney, Australia.

About LED Holdings

LED Holdings, LLC, a portfolio company of Pegasus Capital Advisors (www.pcalp.com) holds a majority of the issued and outstanding shares of Common Stock of Lighting Science Group Corporation. Pegasus Capital Advisors is a private equity fund manager with offices in New York, New York and Cos Cob, Connecticut. Founded in 1995, Pegasus provides capital to middle market companies across a wide range of industries, with particular focus on businesses that make a meaningful contribution to society by positively affecting the environment, contributing to sustainability and enabling healthy living.

Showcasing the most elite in the gourmet and high-end design products industry for 32 years, The Gourmet Housewares Show continues to add to the excitement of taking the show back to Las Vegas. A growing list of exhibitors and programming additions ensure the show will be a must-attend event.

The Gourmet Housewares Show has long prided itself on appealing to the highly selective and discriminating buyer interested in upscale products for the kitchen and dining room. Among the growing list of upscale exhibitors-some new and others well-known-are Palate & Plate, Diva Chocolates, TableTops with a Twist, Tastefully Unique, Yamazaki Tableware, Samantha Grace Designs, Pasabahce, Haute Cuisine, and Wilton Armetale. Read more »

Prepac BLC-4830 An attractive and trendy furniture line without the trendy prices. The Sonoma Collection has the look and feel of much more expensive millwork. But it doesn’t just look good, it costs less! Thoughtful engineering and intelligently grouped production let you enjoy pricing that’s well below the costs of traditional case goods. Durable laminated engineered woods with contoured edges and molded trim, along with brushed nickel knobs give this ready to assemble collection a simple elegance. This is the perfect addition to a living room or den and has three drawers for lots of storage. Use the Console to display decorative plates, books, and baskets. Features: -Includes a profiled top, side moldings, an arched kick plate, and solid brushed nickel knobs -The drawer runs on smooth, all-metal roller glides and has built-in safety stops -Includes three drawers -Dimensions: 30.25″ H x 48″ W x 16″ D -5 year manufacturer’s limited warranty About Prepac: Founded in 1979, Prepac Manufacturing is a state-of-the-art manufacturer of home furnishings and storage products with its main manufacturing factory located in the heart of the forest-rich province of British Columbia, Canada. Prepac is now one of the largest producers of ready to assemble furniture in Canada, with full-service representation throughout North America. To ensure our customers receive outstanding design and quality at competitive prices, Prepac’s design, engineering, production, testing and packaging are all done in-house.
View product details at Amazon

Prepac BLC-4830 An attractive and trendy furniture line without the trendy prices. The Sonoma Collection has the look and feel of much more expensive millwork. But it doesn’t just look good, it costs less! Thoughtful engineering and intelligently grouped production let you enjoy pricing that’s well below the costs of traditional case goods. Durable laminated engineered woods with contoured edges and molded trim, along with brushed nickel knobs give this ready to assemble collection a simple elegance. This is the perfect addition to a living room or den and has three drawers for lots of storage. Use the Console to display decorative plates, books, and baskets. Features: -Includes a profiled top, side moldings, an arched kick plate, and solid brushed nickel knobs -The drawer runs on smooth, all-metal roller glides and has built-in safety stops -Includes three drawers -Dimensions: 30.25″ H x 48″ W x 16″ D -5 year manufacturer’s limited warranty About Prepac: Founded in 1979, Prepac Manufacturing is a state-of-the-art manufacturer of home furnishings and storage products with its main manufacturing factory located in the heart of the forest-rich province of British Columbia, Canada. Prepac is now one of the largest producers of ready to assemble furniture in Canada, with full-service representation throughout North America. To ensure our customers receive outstanding design and quality at competitive prices, Prepac’s design, engineering, production, testing and packaging are all done in-house.
View product details at Amazon

Merchandise Mart Properties Inc., the producers of over 300 events in North America, including the NeoCon Shows, bring you the Northwest’s premier conference and exposition for the interior design, construction and real estate management professional and enthusiast, September 26th & 27th at the Washington State Convention & Trade Center. With three shows in one, a premiere speaker line up, and the best networking opportunity of the year, this industry event is not to be missed! Washington’s very best, new and innovative products and concepts are showcased at Buildex, DesignTrends and Construct Seattle.

National and local associations participating in the show include: the American Society of Interior Designers (ASID Washington Chapter), International Interior Design Association (IIDA), the American Institute of Architects (AIA Washington Council), Associated Builders and Contactors (ABC), Cascadia Region Green Building Council, Building Owners and Managers Association (BOMA), and International Facility Management Association (IFMA). Read more »

Ameriwood is one of the largest producers of flat pack furniture in North America. Ameriwood is a division of Dorel, who has been in the furniture business since 1969. Ameriwood manufactures products in every major consumer category including Home Theater, Workspace, Kitchen, Bedroom, Media Storage, and futons. Ample storage space for books, curios and accessories; three shelves (2 adjustable); sturdy construction. 35 5/8 Inch x 24 15/16 Inch x 9 1/8 Inch

Ameriwood is one of the largest producers of flat pack furniture in North America. Ameriwood is a division of Dorel, who has been in the furniture business since 1969. Ameriwood manufactures products in every major consumer category including Home Theater, Workspace, Kitchen, Bedroom, Media Storage, and futons. Ample storage space for books, curios and accessories; five shelves (3 adjustable); sturdy construction. 68 Inch x 28 Inch x 9 9/16 Inch

Research and Markets (http://www.researchandmarkets.com/reports/c66219) has announced the addition of “Furniture and Related Product Manufacturing Subsector in the U.S. and its Foreign Trade (1997-2009)” to their offering.

This industry report focuses upon the Furniture and Related Product Manufacturing Subsector. Industries in the Furniture and Related Product Manufacturing subsector make furniture and related articles, such as mattresses, window blinds, cabinets, and fixtures. The processes used in the manufacture of furniture include the cutting, bending, molding, laminating, and assembly of such materials as wood, metal, glass, plastics, and rattan. However, the production process for furniture is not solely bending metal, cutting and shaping wood, or extruding and molding plastics. Design and fashion trends play an important part in the production of furniture. The integrated design of the article for both esthetic and functional qualities is also a major part of the process of manufacturing furniture. Design services may be performed by the furniture establishments work force or may be purchased from industrial designers.

Furniture may be made of any material, but the most common ones used in North America are metal and wood. Furniture manufacturing establishments may specialize in making articles primarily from one material. Some of the equipment required to make a wooden table, for example, is different from that used to make a metal one. However, furniture is usually made from several materials. A wooden table might have metal brackets, and a wooden chair a fabric or plastics seat. Therefore, in NAICS, furniture initially is classified based on the type of furniture (application for which it is designed) rather than the material used. For example, an upholstered sofa is treated as household furniture, although it may also be used in hotels or offices. Read more »

DEMAND for high quality and certified imported sawn timber products will increase significantly in Malaysia and the region, according to a timber expert.

Local wood-based and furniture manufacturers, which traditionally used hardwood and rubber wood timber species as their raw materials, had gradually switched to imported sawn timber like oak and pine over the past three to five years, APP Timber Sdn Bhd managing director Michael Hermens said .

With competition from low-cost producers like China and Vietnam, many local players, particularly furniture makers, are actively improving their product range by manufacturing high-end furniture to capture a bigger export market.

Hermens told StarBiz: “There is also an emerging trend among wood-based furniture makers in Malaysia and Thailand to seek custom-made or cut-to-dimension timber components as they want to fully concentrate on assembling, finishing and marketing the end-products.” Read more »