For the second quarter of this year, mattress manufacturer, Sealy Corporation has reported a 26% dropped in its earnings domestically. This decline has attributed to the rising cost of materials as well as the decline of sales.

The company also says it has lost some major distribution accounts as some furniture stores have closed operations due to the current economic conditions.

International sales meanwhile continue to increase.

“The U.S. mattress retail environment deteriorated during the second quarter of 2008, impacting our ability to drive domestic sales volumes. Looking ahead, we expect our second-half performance to be challenging as industry trends weakened further in June and retail traffic remains soft. “ – Larry Rogers, Sealy’s interim chief executive of North America.

Via Forbes