Sealy Corporation announced that its 3Q earnings declined by 27% as a result of an 8% drop in the company’s unit selling price. The stock was downgraded by Citigroup from ‘buy’ to ‘sell’ and touched a 52 week low of USD 13.
Sealy Corporation announced earnings of $0.22 per share for the third quarter, which was below analyst expectations. The company’s revenues increased by 7.5% to $446.4 million; however profitability declined as average prices declined by 8%. Increase in material costs also had a negative impact on the company’s profit margins.