Sept 29 (Reuters) - Mattress-maker Sealy Corp third-quarter profit rose 10 percent and was in line with Wall Street estimates, helped by cost reductions and improved gross margins.
The company, which said it is starting to see positive signs in the market in terms of volume and pricing, posted net income of $12.1 million, or 5 cents a share, compared with $10.9 million, or 12 cents a share, last year.
Sales at the Trinity, North Carolina-based company fell nearly 14 percent to $349.6 million, with total domestic sales falling 13.3 percent and international sales down 14.7 percent.
Analysts on average were expecting the company to earn 5 cents a share, before items, on revenue of $335.2 million, according to Reuters Estimates.
For the quarter, selling, general and administrative costs fell 17 percent to $110.3 million.
Gross margins improved 126 basis points to 41.8 percent.
Mattress makers like Sealy have been cutting costs as they grapple with softer sales in the United States after cash-strapped shoppers cut down on their appetite for big-ticket items amid falling home values and tighter lending conditions.
Shares of the company, whose brands include Sealy, Sealy Posturepedic, and Stearns & Foster, were up 2.6 percent at $3.55 in after-market trade Tuesday. They closed at $3.46 on the New York Stock Exchange.

(Reporting by Abhishek Takle in Bangalore; Editing by Maju Samuel) Keywords: SEALY/ (abhishek.takle@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters messaging: abhishek.takle.reuters.com@reuters.net)

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.