Tempur Sealy gets 1Q boost from acquisition
LEXINGTON, Ky. (AP) — Tempur Sealy International Inc.'s first-quarter profit jumped on its acquisition of mattress maker Sealy but costs tied to the deal hurt its adjusted results.
The company, based in Lexington, Kentucky, makes mattresses, pillows and other products. Formerly known as Tempur-Pedic International Inc., it acquired Sealy Corp. in 2013 for $228.6 million to help give it an edge in the competitive mattress industry.
Tempur Sealy reported Thursday after the market closed that the deal helped more than double its net income to $27.4 million, 44 cents per share, for the period that ended March 31. After adjusting for millions in acquisition costs and other special items, it earned 53 cents per share, down from 62 cents per share last year. Revenue increased 80 percent to $701.9 million from $390.1 million.
Analysts polled by FactSet were anticipating earnings of 51 cents per share on revenue of $683.3 million.
Tempur Sealy said that it expects to earn $2.60 to $2.85 per share for the year on revenue between $2.8 billion and $2.9 billion. Analysts were anticipating earnings of $2.76 per share on revenue of $2.85 billion.
The company also said Thursday that it plans to acquire the Sealy brand rights in Europe, excluding the United Kingdom, from its former licensee as a means to help with its long-term growth. The financial terms of the deal were not disclosed. It made a similar move in Japan last month.
Shares of Tempur Sealy slipped 30 cents to $50.25 in after-hours trading. Its shares added 37 cents to close regular trading at $50.55.