allocation of foam over the next several weeks will affect
our just-in-time manufacturing output in the U.S. and Canada
Statement issued today by Sealy
Sealy, Inc., the world's leading
mattress producer, announced today that it anticipates the
shortage of polyurethane foam. The shortage will result in a
temporary disruption of its manufacturing production schedules.
La-Z-Boy warned retailers and investors of the same shortage
The recent Gulf Coast hurricanes in late August and September
of 2005 caused extensive damage to petrochemical processing
facilities that supply an essential raw material called TDI,
used to manufacture polyurethane foam, a material used in the
majority of Sealy's bedding products. As a result, there is a
temporary foam shortage that will affect North American
manufacturers in the mattress, furniture, and automobile seating
To respond to the situation, Sealy said it will leveraging
global business relationships in an attempt to source foam
product from its partners.
Sealy intends to produce and ship all Sealy Posturepedic,
Stearns & Foster, TrueForm and Reflexion brand orders on a
normal order cycle. However, spot foam supply shortages in
specific plants may disrupt daily or weekly production schedules
for the near future.
"Sealy's ability to respond to market conditions and
challenges is a true source of strength for our company,
particularly in the areas of operational excellence and
sourcing. Our value to our customers is our ability to adjust
our production schedules and direct product orders to meet
demand," said David McIlquham, Sealy's president and chief
"The industry allocation of foam over the next several weeks
will affect our just-in-time manufacturing output in the U.S.
and Canada. We're working in close partnership with our
suppliers, customers and entire manufacturing system to minimize
the disruption to our business," said Mike Hofmann, senior vice
president of operations.
While the full duration and extent of the TDI shortage
remains unknown, the Company's management believes that the
steps being taken in response to the situation will minimize the
impact of this disruption on Sealy's customers and its business.
At this time, however, the Company is unable to quantify any
potential adverse impact this disruption may have on its
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