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RSSLexington Herald-Leader (Lexington, Ky.)
By Jim Jordan, The Lexington Herald-Leader, Ky.
Jan. 27--Tempur-Pedic International reported higher earnings yesterday, but the Lexington company had mixed results in meeting the expectations of Wall Street analysts.
Tempur-Pedic said its sales increased 9 percent for the fourth quarter and 22 percent for the year 2005, compared with the same periods of 2004.
Earnings for the latest quarter were $30.4 million, or 30 cents a share, versus $23.9 million, or 23 cents a share, in the 2004 quarter.
Analysts had expected 29 cents for the 2005 quarter.
For 2005, Tempur-Pedic earned $99.3 million, or 97 cents a share, compared with $75 million, or 73 cents a share, for 2004.
Wall Street had expected $1.04 for 2005.
The effect of the report on Tempur-Pedic's stock price will be known today since the company announcement came after stock markets closed yesterday.
To increase sales and earnings, Tempur-Pedic executives told analysts during a conference call that they are expanding sales forces in the United States and internationally, increasing spending for marketing, doubling the company's research and development budget, and introducing two new mattresses next week at a major furniture show in Las Vegas.
The new products are The GrandBed by Tempur-Pedic and The RhapsodyBed by Tempur-Pedic. Queen-size versions of those mattresses will sell for $5,499 and $2,399, respectively.
Tempur-Pedic also said it has increased its stock repurchase fund by $100 million to $180 million for 2006.
Looking ahead, the company forecast sales of $940 million to $970 million this year and earnings per share of $1.18 to $1.23.
Reach Jim Jordan at (859) 231-3242 or 1-800-950-6397, Ext. 3242, or jjordan1@herald-leader.com [mailto:jjordan1@herald-leader.com].
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