Natures Sunshine Makes Global Sales Progress

Natures Sunshine Makes Global Sales Progress

PROVO, UtahNaturesSunshine Products Inc. (NASDAQ:NATR) reported significant sales growth in mostof its international markets, while domestic sales also made progress. Overallsales increased 8 percent to $87 million, compared to a year ago, due primarilyto a $6 million or 22.4-percent boost in the companys international division,which included strong performances in Japanese, Russian, Canadian and Columbianmarkets. Sales in the United States inched up 2.7 percent to $36.4 million, butthe companys Synergy Worldwide revenues were flat, compared to a year ago.Overall net income slipped to $4.1 million or $0.26 per share from $4.8 millionor $0.31 per share earned in second quarter 2004; however, a one-time tax credit boosted the 2004 quartersearnings.

Synergy seems to have turned the corner, and we anticipateimproved results for the rest of the year, said Douglas Faggioli, presidentand chief executive officer. On the other hand, our domestic operationcontinued its comeback and international results reflected impressive gains inkey markets. We remain focused on reducing expenses worldwide as reflected inthe 170-basis-point improvement in SG&A, as a percentage of sales, in thesecond quarter.