June 2008 -- Tempur-Pedic International Inc., a manufacturer of mattresses and pillows, reported net income
of $13.5 million for the first quarter of 2008, a significant drop from $29.8 million in the
first quarter of 2007. Net sales dropped 7% to $247.2 million in the first quarter of 2008 from
$266.0 million in the comparable quarter of 2007. Overall, net sales in the domestic segment
were off by 16%, while international net sales were up by 10%.
In an April 17, 2008, statement, president and CEO H. Thomas Bryant said, "The U.S.
macroeconomic environment deteriorated during the quarter and contributed to what we believe is
a slowdown in the mattress industry. Based on industry data and retailer feedback, we believe
average selling prices in the industry are trending lower as many consumers defer high-end
mattress purchases. We believe the foregoing factors are the primary reason our domestic segment
net sales were below prior expectations. In addition, our international segment experienced
weakening consumer trends in several European markets."
The company remains committed to its business model, and over the next few quarters will begin
what Bryant described as "the most extensive new product launch in our company's history. This
launch will include new mattress models, advanced technological innovations and new pillow
concepts as well as an upgrade to the most widely distributed mattress model in our lineup. We
anticipate this launch will be well received by retailers and consumers."
In February 2008, Bryant announced his plans to retire from the company effective mid-year 2008.
