Keller sales down 21.7% for year
By Furniture Today Staff -- Furniture Today, March 24, 2002
CORYDON, Ind. — CORYDON, Ind. — Keller said fourth-quarter sales declined 26% from a year earlier to $9.3 million, and it posted a $3.8 million loss, mainly because of a charge for a year-end inventory adjustment.
For the full year, the case goods maker reported a 21.7% sales decline and a $2.3 million loss, compared with net income of $2 million in 2000.
"Generating sales is our top priority for 2002," said Steve Robertson, president and chief executive officer. "Our strategy is focused on exploiting our three advantages: solid-wood construction, made in America, and quality construction."
He said the company plans to introduce product, add dealers and "enhance the business of our current retailers by implementing in-store solid-wood specialty areas, along with extensive product sales training."
Keller's 2001 sales of $43.4 million were down from $55.4 million the previous year.
The company attributed the fourth-quarter loss to a $3.6 million after-tax charge, including $2.8 million for writing down the value of its inventory based on a physical inventory in the period. The company said that during the year, it had included excess labor and overhead in inventory because of its decision to retain employees despite falling demand.
In the future, the company said it will take a physical inventory once a quarter, rather than once a year, and make adjustments as needed.
Despite the rocky year, Robertson said Keller was able to improve its lumber yield, reduce the number of parts discarded because of defects and reduce indirect labor. The company also shortened by half to 28 days the time it took to deliver furniture after order.
"Our factories are now operating at the appropriate level for incoming orders," he said.
| Year ended 12/31 | 2001 | 2000 | Change |
|---|---|---|---|
| Sales | $43,363,064 | $55,391,644 | (21.7%) |
| Operating income | (3,602,975) | 3,261,461 | — |
| Net income | (a)(2,250,411) | 2,022,089 | — |
| Earnings per share | (0.40) | 0.36 | — |
| (a) Includes a $1.3 million income tax benefit. | |||
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