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Natuzzi SpA Message Board

  • longtimefollower longtimefollower Jul 1, 2013 5:40 PM Flag

    FINALLY...a restructuring plan worth its salt.

    Cutting 1726 employees, while painful, is certainly necessary. Costs in Italy, to produce furniture, are simply unsustainable, and the 20% or so decline in quarter over year ago quarter sales, IN ITALY, shows that the Italian people are not willing to "pay up," in order to keep their own countymen employed.

    I look forward to hearing addl details of the plan, going forward, but it appears, thank goodness, that they are finally biting the bullet, and realize that they are not going to magically "grow" back to profitability...unless they first take a meat cleaver to their cost structure.

    The days of Natuzzi running this as a "cost plus" business, where they could just set their retail pricepoints where they needed to, to achieve a target profit margin, is long since over. It's disappointing it took them this long to face that....but in my mind, the fact that they HAVE now faced it, makes the company that much more ripe for a financial turnaround, and return to material profitability,over the next 6-18 months.

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