"During the quarter, we made terrific progress against our key initiatives"
David J. McIlquham, Sealy's Chairman and Chief Executive Officer

Sealy Mattress Corporation, the world's largest manufacturer of bedding products, today reported sales or the third fiscal quarter ending August 29, 2004 of $357.3 million, an increase of 10.0% from $324.9 million for the same period a year ago. Net income for the quarter was $20.4 million compared with net income of $8.7 million a year earlier, up 134.5%.

Despite this good news, the company's net loss year-to-date was $50.5 million.

"We are extremely pleased with our record third quarter and year-to-date results," said David J. McIlquham, Sealy's Chairman and Chief Executive Officer. "We have been able to build on our successful results in the first two quarters and continue to deliver strong sales, gross margin and EBITDA growth. We are achieving strong mix improvements from our new products as well as improved manufacturing efficiencies. During the quarter, we made terrific progress against our key initiatives. We have improved our balance sheet through strong operating results and an ongoing focus on working capital management. As a result of these efforts, we have reduced our net debt by $17.5 million during the quarter and have reduced our term and revolving debt by an additional $34.5 million subsequent to the end of the third quarter," said McIlquham.

Sealy is the largest bedding manufacturer in the world with sales of $1.2 billion in 2003.