HTL sales up but profits down20 March 2012
Leather upholstery producer and sofa maker, HTL International said its worldwide sales rose 16.9% in 2011, but profits tumbled due to a pair of one-time write offs, rising leather prices and higher costs at its Chinese factories.
The company, which is listed on the Singapore Stock Exchange and reports financial data in US dollars, said its North American sales grew even faster, rising 46.6% to $98.4 million.
Worldwide sales totaled $529.6 million, up from $453 million in 2010.
Net income totaled $5.83 million, down from $18.09 million in 2010. The 2011 bottom line included a $1.5 million write off of deferred tax assets and restructuring charges of $3.9 million.
HTL said North America was its second-largest sales region last year, trailing only Europe, which recorded sales of $248.8 million. The third-biggest region was Australia and New Zealand, which had sales of $69 million.
‘The economic environment around the globe remains volatile with Europe's sovereign debt crisis deepened in the last quarter of 2011. The economic recovery in the US continues to be uncertain with job creation remaining sluggish,’ the company said in a report accompanying the financial data. ‘We have worked hard to capture market share in regions that present good opportunities.’
In the fourth quarter, worldwide sales totaled $149.6 million, an increase of 30.4% from $114.7 million on the fourth quarter of 2010.
Net income totaled $4.03 million, down 16.4% from $4.82 million in the fourth quarter of 2010.
Starting as a modest sofa maker in 1976, HTL have grown to become one of the world's leading manufacturers of leather sofas and leather upholstery hides. Listed on the Singapore Exchange since 1993, they are a transnational company focused on the business-to-business sector. They have more than 7,500 employees and have fully integrated manufacturing facilities in China, plus marketing offices across the globe. Their products are marketed to more than 40 countries, through a network of sales partners and retailers.