April 16, 2009 / 9:27 PM / 10 years ago

UPDATE 1-Tempur-Pedic Q1 profit beats view; backs profit outlook

* Q1 profit $0.18 beats Street by 6 cents

* Q1 sales fall 28 pct

* Backs FY09 earnings outlook

* Shares up 4 pct after hours

BANGALORE, April 16 (Reuters) - Mattress maker Tempur-Pedic International Inc (TPX.N) reported a better-than-expected first-quarter profit on lower costs and backed its earnings outlook for fiscal 2009, sending its shares up 4 percent in extended trade.

“An easing commodity environment and our productivity initiatives have generated substantial margin improvement despite lower volumes,” Tempur-Pedic Chief Executive Mark Sarvary said in a statement.

In the latest first quarter, the Lexington, Kentucky-based company reported net income of about $13.3 million, down slightly from $13.5 million a year earlier. But its earnings per share was 18 cents, beating analysts estimates by 6 cents.

The mattress maker said results included a non-recurring $1.3 million tax charge from a change in a foreign tax law.

Net sales fell 28 percent to $177.1 million.

Tempur-Pedic, which reaffirmed its fiscal 2009 earnings forecast of about 70 cents to 90 cents a share, however trimmed its sales outlook for the period.

Tempur-Pedic, like other mattress makers Sealy Corp ZZ.N and Select Comfort Corp SCSS.O, has been struggling with softer sales at its U.S. markets after cash-strapped shoppers cut their appetite for big-ticket items amid falling home values and tighter lending conditions.

The company, which sells mattresses and pillows under the Tempur and Tempur-Pedic brand names, now expects 2009 net sales of $700 million to $740 million, down from its prior outlook of about $770 million to $790 million.

Tempur-Pedic shares were up 34 cents at $9.50 in trading after the closing bell. (Reporting by Dhanya Skariachan in Bangalore; Editing Bernard Orr)

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