Duties help offset 24.6% drop in sales at Stanley
By Larry Thomas -- Furniture Today, February 2, 2009
STANLEYTOWN, Va. — Stanley Furniture said fourth-quarter sales fell 24.7%, but earnings rose 25.7% due to money received from import duties collected on Chinese-made wood bedroom furniture.
The company, one of the petitioners in an antidumping case brought against numerous Chinese furniture producers, reported fourth-quarter net income of $6.25 million or 60 cents per share. In the fourth quarter of 2007, earnings were $5 million or 48 cents per share.
The most recent quarter's earnings included $11.5 million in anti-dumping duties. In the same period in 2007, duties of $10.4 million were received, the company reported.
Sales in the most recent quarter were $50.4 million, down from $66.8 million in the last quarter of 2007.
“We continue to experience a deteriorating demand environment and frankly anticipate further sales declines before seeing any improvement,” said Albert Prillaman, chairman and CEO.
“Our focus is on effective balance sheet management and preparing the business for success when demand eventually improves,” Prillaman added.
To that end, Stanley said its board of directors voted to suspend the dividend on its common stock, a move that will save about $4 million annually.
Prillaman also said the company won't provide sales and earnings guidance for 2009 due to uncertainty in the economy.
For the calendar year 2008, sales were $226.5 million, down 19.9% from $282.8 million in 2007.
Last year's earnings totaled $3.7 million or 36 cents per share. That's down 36.7% from $5.9 million or 55 cents per share in 2007.
Last year's earnings include restructuring charges of $7.3 million, while 2007 included restructuring charges of $3.6 million and a pension termination charge of $6.6 million.
| Stanley Furniture | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 12/31 | 2008 | 2007 | Change |
| (a) Includes a pretax pension termination charge of $6.6 million in the 2007 year and pretax income from the Continued Dumping and Subsidy Offset Act of $11.5 million in the 2008 quarter and year and $10.4 million in the 2007 quarter and year. Also includes net restructuring charges of $1.4 million in the 2008 quarter, $5.8 million in the 2008 year and $2.4 million in the 2007 quarter and year. |
|||
| Sales | $50,357,000 | $66,836,000 | (24.7%) |
| Operating income | (1,259,000) | (2,430,000) | — |
| Net income (a) | 6,246,000 | 4,967,000 | 25.7% |
| Earnings per share | 0.60 | 0.48 | 25.0% |
| Year ended 12/31 | 2008 | 2007 | Change |
| Sales | $226,522,000 | $282,847,000 | (19.9%) |
| Operating income | (3,848,000) | 7,337,000 | — |
| Net income (a) | 3,736,000 | 5,902,000 | (36.7%) |
| Earnings per share | 0.36 | 0.55 | (34.5%) |
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Stanley sales fall 24.6%, but earnings rise
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