The supplier of upholstery fabric labels and mattress ticking, reported a double-digit sales increase for the quarter ended Oct. 28 as both of its business segments turned in strong performances.
Net income also increased sharply due to improved operating efficiencies.
Sales for the period - the second quarter of Culp's fiscal year - totaled $65.6 million. That's a 13% increase from $58 million in last year's second fiscal quarter.

The company said mattress ticking sales were up 12.6% to $39.7 million and upholstery fabric labels sales rose 13.6% to $25.9 million.
Net income totaled $8.27 million or 67 cents per share, up more than 32% from $6.25 million or 49 cents per share in the same quarter last year. The most recent quarter included an income tax benefit of $3.7 million, and last year's second fiscal quarter included a tax benefit of $3.4 million.

"The mattress industry is continuing to evolve into a more decorative business, and many of our customers are upgrading their fabric labels choices to achieve a more fashionable look," said Iv Culp, president of the mattress fabrics division.

For the six months ended Oct. 28, companywide sales rose 13.9% to $134.7 million, while net income rose more than 46% to $11.8 million or 94 cents per share.The most recent six months included a $1.9 million income tax benefit, while the same period the previous fiscal year included a $2.2 million tax benefit.The company said it had no cash income tax expense in the U.S. during the most recent quarter, and does not expect to have any "for a number of years" because the company had about $60 million in net operating loss carryforwards at the beginning of the fiscal year that can be used to offset U.S. taxes.The company also announced it will pay a special cash dividend of 50 cents per share in December, and will move up its regular quarterly dividend payment of 3 cents per share from January to December.