Securities and Exchange Commission
Washington, D.C.  20549

Form 6-K

Report of Foreign Issuer
Pursuant To Rule 13a-16 Or 15d-16
Of The
Securities Exchange Act of 1934


For the month of March, 2009 Commission File Number 1-11854


NATUZZI S.p.A.

(Translation of registrant’s name into English)
 

Via Iazzitiello 47

70029 Santeramo, Italy

(Address of principal office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ⊠ Form 40-F ⃞

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ⃞ No ⊠

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

Natuzzi S.p.A Announces Fourth Quarter and Full Year 2008 Financial Results

MILAN--(BUSINESS WIRE)--March 30, 2009--The Board of directors of Natuzzi S.p.A. (NYSE: NTZ) (“Natuzzi” or “the Company”), the world leading manufacturer of leather-upholstered furniture, today announced the fourth quarter and fiscal 2008 financial results.

Fourth quarter 2008 Summary:

Fourth Quarter Results

Natuzzi Group net sales during the fourth quarter of 2008 increased by 3,0% to €182,1 M as compared to the same quarter last year. Upholstery sales were € 161,1 M or 88,5% of net sales, compared to €157.2 M 88,9% of total net sales in the fourth quarter of 2007. The contribution to upholstery net sales by geographic area was as follows: Europe for 52%; Americas 39% and rest of the world 9%.

For the fourth quarter of 2008 the Group reported a gross profit of €58,4 M, an increase of 35,1% as compared to €43,2 M for the same quarter last year. Gross margin in the fourth quarter of 2008 was 32,0% as compared to 24,4% in the fourth quarter of 2007. The improvement in gross margin was attributable to lower purchasing and labor costs.

Operating loss was €5,5M went in the fourth quarter of 2008 as compared to a loss of €20,9 M in the same period last year.

Net loss was €19,8 M as compared to a net loss of €39,6 M for the same period of 2007.

Pasquale Natuzzi, Chairman and CEO, commented: “We are pleased to have met our fourth quarter and full year expectations despite the adverse economic environment. We achieved an increase in sales and significant reduction in our cost of goods sold in 2008. We reduced our operating loss to €35,0 M from €49,1 M in 2007 and we will continue with our cost reduction plan. We remain on track with our previously announced 3-year business plan approved by our Board of Directors. We have an extremely skilled and committed management team and remain dedicated to achieving our goal of € 1 billion net sales and 15% operating Margin in 2011.”

Fiscal 2008 Results:

For fiscal 2008, net sales were €666,0 M an increase of 5% from €634,4 M in 2007. Upholstery sales were € 587,8 M or 88,3% of net sales, as compared to €563,5 M or 88,8% of total net sales in fiscal 2007. The contribution to full year upholstery net sales by geographic area was as follows: Europe for 55%; Americas 36% and rest of the world 9%.

The Group reported a Gross profit of €187,3 M for 2008. This represented a 7,7% increase over the previous year. In fiscal 2008 operating loss was €35,0 M as compared to a loss of € 49,1 M in 2007.

For fiscal 2008 the net loss was €61,9 M as compared to €62,7 M for fiscal 2007. The net loss for the full year reflected an impairment charge of €5 M and accrued costs of approximately €4,5 M.

As the end of December 2008, stores worldwide totaled 325 (including Italsofa stores and Divani & Divani stores).

Balance Sheet Highlights

The Natuzzi Group ended fiscal 2008 with cash of €47,3 M and no long term debt. Total Inventory declined 14,2% to €92,0 M at the end of 2008. Shareholder’s equity was €345,2 M.

The Company will host a conference call on Tuesday, March 31, 2009 at 10:00 a.m. Eastern Time to discuss fourth quarter and fiscal 2008 financial results.

A live web cast of the conference call will be available online at http://www.natuzzi.com/ under the Investor Relations section. A replay will be made available online approximately 2 hours for a period of 30 days following the live call at 888- 203-1112 in North America and 719-457-0820 International; Pin Number 8965545.

About Natuzzi

Founded in 1959 by Pasquale Natuzzi, Natuzzi S.p.A. designs and manufactures a broad collection of residential upholstered furniture. With 2007 consolidated revenues of EUR 634.4 million on, Natuzzi is Italy's largest furniture manufacturer. The Natuzzi group exports its innovative high-quality sofas and armchairs to 123 markets on five continents under two brands, Natuzzi and Italsofa.

Cutting-edge design, superior Italian craftsmanship, and advanced, vertically integrated manufacturing operations underpin the Company's market leadership.

Natuzzi S.p.A. has been listed on the New York Stock Exchange since May 1993. The Company is ISO 9001 and 14001 certified.

Forward looking statement

Statements in this press release other than statements of historical fact are “forward-looking statements.” Forward–looking statements are based on management’s current expectations and beliefs and therefore you should not place undue reliance on them. These statements are subject to a number of risks and uncertainties, including risks that may not be subject to the Group’s control, that could cause actual results to differ materially from those contained in any forward-looking statement. These risks include, but are not limited to, fluctuations in exchange rates, economic and weather factors affecting consumer spending, competitive and regulatory environment, as well as other political, economical and technological factors, and other risks identified from time to time in the Group’s filings with the Securities and Exchange Commission, particularly in the Group’s annual report on Form 20-F. Forward looking statements speak as of the date they were made, and the Group undertakes no obligation to update publicly any of them in light of new information or future events.

Natuzzi S.p.A. and Subsidiaries
Consolidated Profit & Loss for year ended on December 31, 2008 and 2007 on the basis of Italian GAAP
(expressed in millions Euro except for share data)
                     
  Three months ended on   Change   Percent of Sales
    31- Dec-08   31- Dec-07   %   31- Dec-08   31- Dec-07
   
Upholstery net sales 161.1 157.2 2.5 % 88.5 % 88.9 %
Other sales   21.0     19.7     6.8 %   11.5 %   11.1 %
Total Net Sales   182.1     176.9     3.0 %   100.0 %   100.0 %
 
Purchases (74.2 ) (85.1 ) -12.8 % -40.8 % -48.1 %
Labor (20.8 ) (28.4 ) -26.8 % -11.4 % -16.0 %
Third-party manufacturers (4.6 ) (5.4 ) -14.3 % -2.6 % -3.1 %
Manufacturing costs (12.6 ) (11.5 ) 9.3 % -6.9 % -6.5 %
Net Inventoris   (11.6 )   (3.3 )   249.2 %   -6.3 %   -1.9 %
Cost of Sales   (123.8 )   (133.7 )   -7.4 %   -68.0 %   -75.6 %
                     
Gross Profit   58.4     43.2     35.1 %   32.0 %   24.4 %
 
Selling Expenses (48.9 ) (50.0 ) -2.1 % -26.8 % -28.2 %
G&A Expenses (14.9 ) (14.2 ) 5.5 % -8.2 % -8.0 %
                     
Operating Income/(Loss)   (5.5 )   (20.9 )   73.9 %   -3.0 %   -11.8 %
 
Other Income/(Cost), Net (15.3 ) (2.4 ) 546.4 % -8.4 % -1.3 %
                     
Earning before Income Taxes   (20.7 )   (23.3 )   10.9 %   -11.4 %   -13.2 %
 
Current taxes 0.7 (16.6 ) -104.4 % 0.4 % -9.4 %
                     
Net result   (20.0 )   (39.9 )   49.8 %   -11.0 %   -22.5 %
 
Minority interest (0.2 ) (0.3 ) -44.3 %
                     
Net Group Result   (19.8 )   (39.6 )   49.9 %   -10.9 %   -22.4 %
                     
Net Group Result per Share   (0.36 )   (0.72 )            
 
Outstanding Shares 54,824,277 54,824,277
                     
Key Figures in U.S. dollars Three months ended on Change Percent of Sales
(millions)   31- Dec-08   31- Dec-07   %   31- Dec-08   31- Dec-07
 
Total Net Sales 240.5 233.6 3.0 % 100.0 % 100.0 %
Gross Profit 77.1 57.0 35.1 % 32.0 % 24.4 %
Operating Income (Loss) (7.2 ) (27.6 ) 73.9 % -3.0 % -11.8 %
Net Group Result (26.2 ) (52.2 ) 49.9 % -10.9 % -22.4 %
Net Group Result per Share (0.5 ) (1.0 )
 
Average exchange rate (U.S.$ per €)   1.3202                  
UPHOLSTERY NET SALES BREAKDOWN
 
Geographic breakdown
 

Net sales million euro

    Net sales seats  
    3 months       3 months    
31 December 08   31 December 07

Change %

31 December 08   31 December 07

Change %

       
Americas 62.7 39 % 54.5 35 % 14.9 % 352,475 48 % 343,928 46 % 2.5 %
Natuzzi 32.5 20 % 31.1 20 % 4.3 % 152,827 21 % 159,828 22 % -4.4 %
Italsofa 30.2 19 % 23.4 15 % 28.9 % 199,648 27 % 184,100 25 % 8.4 %
 
Europe 83.9 52 % 89.2 57 % -6.0 % 315,765 43 % 337,053 45 % -6.3 %
Natuzzi 47.6 30 % 52.3 33 % -8.9 % 121,633 17 % 134,894 18 % -9.8 %
Italsofa 36.3 23 % 37.0 24 % -1.9 % 194,132 26 % 202,159 27 % -4.0 %
 
Rest of the world 14.6 9 % 13.5 9 % 8.4 % 64,466 9 % 60,024 8 % 7.4 %
Natuzzi 7.1 4 % 8.1 5 % -11.8 % 17,703 2 % 23,660 3 % -25.2 %
Italsofa 7.5 5 % 5.4 3 % 38.3 % 46,763 6 % 36,363 5 % 28.6 %
                                         
Total 161.1 100 % 157.2 100 % 2.5 % 732,705 100 % 741,004 100 % -1.1 %
                                         
 
Brands breakdown

Net sales million euro

Net sales seats
    3 months       3 months    
31 December 08

 

31 December 07

Change %

31 December 08 31 December 07

Change %

 
Natuzzi 87.2 54 % 91.4 58 % -4.7 % 292,163 40 % 318,382 43 % -8.2 %
 
Italsofa 74.0 46 % 65.8 42 % 12.4 % 440,542 60 % 422,622 57 % 4.2 %
                                         
Total   161.1   100 %   157.2   100 %   2.5 %   732,705   100 %   741,004   100 %   -1.1 %
Natuzzi S.p.A. and Subsidiaries
Consolidated Profit & Loss for year ended on December 31, 2008 and 2007 on the basis of Italian GAAP
(expressed in millions Euro except for share data)
                     
  Twelve months ended on   Changes   Percent of Sales
    31- Dec-08   31- Dec-07   %   31- Dec-08   31- Dec-07
   
Upholstery net sales 587.8 563.5 4.3 % 88.3 % 88.8 %
Other sales   78.2     70.9     10.4 %   11.7 %   11.2 %
Total Net Sales   666.0     634.4     5.0 %   100.0 %   100.0 %
 
Purchases (301.8 ) (308.2 ) (2.1 %) (45.3 %) (48.6 %)
Labor (97.7 ) (101.7 ) (3.9 %) (14.7 %) (16.0 %)
Third-party_manufacturers (18.5 ) (16.5 ) 12.0 % (2.8 %) (2.6 %)
Manufacturing Costs (45.5 ) (41.1 ) 10.6 % (6.8 %) (6.5 %)
Net Inventoris   (15.3 )   6.9     (320.4 %)   (2.3 %)   1.1 %
Cost of Sales   (478.8 )   (460.6 )   3.9 %   (71.9 %)   (72.6 %)
                     
Gross Profit   187.3     173.8     7.7 %   28.1 %   27.4 %
 
Selling Expenses (172.3 ) (173.9 ) (0.9 %) (25.9 %) (27.4 %)
G&A Expenses (49.9 ) (49.0 ) 1.8 % (7.5 %) (7.7 %)
                     
Operating Income/(Loss)   (35.0 )   (49.1 )   28.8 %   (5.3 %)   (7.7 %)
 
Interest Income/(Costs), Net (0.2 ) 1.7 (114.4 %) (0.0 %) 0.3 %
Foreign Exchange, Net (11.1 ) (7.1 ) 55.8 % (1.7 %) (1.1 %)
Other Income/(Cost), Net (14.5 ) 2.8 (612.7 %) (2.2 %) 0.4 %
                     
Earning before Income Taxes   (60.8 )   (51.7 )   (17.6 %)   (9.1 %)   (8.2 %)
 
Current taxes (1.6 ) (11.4 ) (0.2 %) (1.8 %)
                     
Net result   (62.4 )   (63.1 )   1.2 %   (9.4 %)   (9.9 %)
 
Minority interest (0.5 ) (0.5 )
                     
Net Group Result   (61.9 )   (62.6 )   1.2 %   (9.3 %)   (9.9 %)
                     
Net Group Result per Share   (1.13 )   (1.14 )            
                     
Outstanding Shares   54,824,227     54,824,227              
 
                     
Key Figures in U.S. dollars Twelve months ended on Changes Percent of Sales
(millions)   31- Dec-08   31- Dec-07   %   31- Dec-08   31- Dec-07
 
Total Net Sales 979.9 933.3 5.0 % 100.0 % 100.0 %
Gross Profit 275.5 255.7 7.7 % 28.1 % 27.4 %
Operating Income (Loss) (51.5 ) (72.3 ) 28.8 % (5.3 %) (7.7 %)
Net Group Result (91.0 ) (92.1 ) 1.2 % (9.3 %) (9.9 %)
Net Group Result per Share (1.7 ) (1.7 )
 
Average Exchange Rate ( U.S.$ per €)   1.4712                  
UPHOLSTERY NET SALES BREAKDOWN
 
Geographic breakdown
 

Net sales million euro

    Net sales seats  
    12 months       12 months    
31 December 08   31 December 07

Change %

31 December 08   31 December 07

Change %

       
Americas 208.6 36 % 198.6 35 % 5.0 % 1,272,559 47 % 1,176,584 45 % 8.2 %
Natuzzi 110.4 19 % 114.4 20 % -3.5 % 554,492 20 % 560,646 22 % -1.1 %
Italsofa 98.2 17 % 84.2 15 % 16.6 % 718,067 26 % 615,938 24 % 16.6 %
 
Europe 323.7 55 % 319.4 57 % 1.3 % 1,211,939 45 % 1,225,882 47 % -1.1 %
Natuzzi 189.3 32 % 191.8 34 % -1.3 % 487,821 18 % 523,054 20 % -6.7 %
Italsofa 134.4 23 % 127.6 23 % 5.3 % 724,118 27 % 702,828 27 % 3.0 %
 
Rest of the world 55.5 9 % 45.5 8 % 22.0 % 237,809 9 % 189,926 7 % 25.2 %
Natuzzi 32.8 6 % 29.9 5 % 9.7 % 90,430 3 % 87,950 3 % 2.8 %
Italsofa 22.7 4 % 15.6 3 % 45.5 % 147,379 5 % 101,976 4 % 44.5 %
                                         
Total 587.8 100 % 563.5 100 % 4.3 % 2,722,307 100 % 2,592,392 100 % 5.0 %
                                         
 
Brands breakdown

Net sales million euro

Net sales seats
    12 months       12 months    
31 December 08 31 December 07

Change %

31 December 08 31 December 07

Change %

 
Natuzzi 332.5 57 % 336.1 60 % -1.1 % 1,132,743 42 % 1,171,650 45 % -3.3 %
 
Italsofa 255.3 43 % 227.4 40 % 12.3 % 1,589,564 58 % 1,420,742 55 % 11.9 %
                                         
Total   587.8   100 %   563.5   100 %   4.3 %   2,722,307   100 %   2,592,392   100 %   5.0 %
Natuzzi S.p.A. and Subsidiaries
Consolidated Balance Sheets
(Expressed in millions of euro)
 
ASSETS   31-Dec-08   31-Dec-07
   
Current assets:
Cash and cash equivalents 47.3 87.5
Marketable debt securities 0.0 0.0
Trade receivables, net 122.8 117.7
Other receivables 46.2 47.8
Inventories 92.0 107.3
Unrealized foreign exchange gains - 0.9
Prepaid expenses and accrued income 1.3 1.8
Deferred income taxes 4.2 1.3
         
Total current assets   313.8   364.3
 
Non current assets:
Net property, plant and equipment 211.8 235.9
Other assets 13.3 17.3
Deferred income taxes 0.2

-

 
Total assets   539.1   617.5
 
LIABILITIES AND SHAREHOLDERS' EQUITY        
 
Current liabilities:
Short-term borrowings 9.7 7.6
Current portion of long-term debt 0.5 0.3
Accounts payable-trade 68.6 89.2
Accounts payable-other 29.2 29.2
Unrealized foreign exchange losses 4.5 -
Accounts payable-shareholders for dividends 0.6 0.6
Income taxes 1.8 1.6
Salaries, wages and related liabilities 16.8 17.5
         
Total current liabilities   131.6   146.1
 
Long-term liabilities:
Employees' leaving entitlement 31.7 33.3
Long-term debt 3.3 2.1
Deferred income for capital grants 12.1 13.3
Other liabilities 14.4 10.9
         
Minority interest   0.8   0.1
 
Shareholders' equity:
Share capital 54.9 54.8
Reserves 42.3 42.3
Additional paid-in capital 8.3 8.3
Retained earnings 239.8 306.2
Total shareholders' equity   345.2   411.6
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   539.1   617.5
Natuzzi S.p.A. and Subsidiaries
Consolidated Statements of Cash Flows
 
(Expressed in million of euro)
  31-Dec-08   31-Dec-07
Cash flows from operating activities:  
Net earnings (loss) (61.9 ) (62.6 )
 
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 30.5 30.8
Employees' leaving entitlement (1.7 ) (1.9 )
Deferred income taxes (3.1 ) 8.5
Minority interest (0.4 ) (0.5 )
(Gain) loss on disposal of assets 2.1 1.3
Unrealized foreign exchange losses and gains 5.4 4.5
Impairment of long lived assets 5.3

-

Deferred income for capital grants (1.0 ) (1.0 )
 
Change in assets and liabilities:
Receivables, net (5.1 ) 1.6
Inventories 15.3 (6.9 )
Prepaid expenses and accrued income 0.6 0.1
Other assets 1.7 (3.1 )
Accounts payable (20.7 ) 9.7
Income taxes 0.2 (3.0 )
Salaries, wages and related liabilities (0.7 ) (4.1 )
Other liabilities 0.4 11.7
 
Total adjustments 28.9     47.5  
 
Net cash provided by operating activities (33.1 )   (15.1 )
 
Cash flows from investing activities:
Property, plant and equipment:
Additions (15.2 ) (26.7 )
Disposals 0.2 0.5
Government grants received 1.4 -
Marketable debt securities:
Proceeds from sales - -
Purchase of business, net of cash acquired - (0.2 )
Disposal of business 1.1     -  
 
Net cash used in investing activities (12.5 )   (26.4 )
 
Cash flows from financing activities:
Long-term debt:
Proceeds 2.0 -
Repayments (0.7 ) (0.3 )
Short-term borrowings 2.1 3.8
Capital injection 0.5
Dividends paid to minority interests -     -  
 
Net cash used in financing activities 4.0     3.5  
 
Effect of translation adjustments on cash 1.4     (2.6 )
 
Increase (decrease) in cash and cash equivalents (40.2 ) (40.7 )
 
Cash and cash equivalents, beginning of the year 87.5     128.1  
 
Cash and cash equivalents, end of the year 47.3     87.5  

CONTACT:
Natuzzi
Silvia Di Rosa, +39-335-78-64-209
Investor Relations
sdirosa@natuzzi.com



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

NATUZZI S.p.A.

(Registrant)
 

Date:

March 30, 2009

By:

/s/ Pasquale Natuzzi

Pasquale Natuzzi