Early last week, Tempur-Pedic announced that it was going to release it’s 3rd Quarter financial report for this year. The verdict is out, and unfortunately — it’s not quite positive….

LEXINGTON, Ky.–Net income for Tempur-Pedic plummeted 38 percent in the third quarter, to $24.1 million.

The quarterly financial results for the nation’s fifth largest mattress manufacturer were yet another sign of the weakness in the overall mattress market. Tempur-Pedic’s sales fell 14 percent in the quarter, to $252.8 million, driven down by a 17 percent drop in domestic sales. Globally, unit sales of mattresses declined 15 percent, and unit sales of pillows slipped by 10 percent—both categories suffering from an equal 18 percent dive in unit sales in the United States. Both gross profit margin and operating profit margin also fell significantly in the quarter.

Among the few up notes, Tempur-Pedic’s operating cash flow rose 30 percent in the third quarter. The company was also able to increase its cash balance by 28 percent, and reduce its total debt by 7 percent.

A company statement predicted that its sales and earnings in the fourth quarter will fall below prior expectations. Sales for all of 2008 will likely finish at between $930 million and $950 million, or from 14 percent to 16 percent below sales for 2007.

Via HFN Mag