Bush posts net loss as 3Q sales slip 6.4%
By Furniture Today Staff -- Furniture Today, November 16, 2003
Jamestown, N.Y. — Sales declines have slowed to the single digits for Bush Inds., parent of ready-to-assemble and case goods producer Bush Furniture North America, although the company posted a net loss in the third quarter ended Sept. 27.
Sales of $79 million in the quarter were down 6.4% from the same period a year earlier. For the first nine months, sales of $224.7 million were down 10.7%.
The company said it lost $3.6 million in the quarter, compared with net income of $492,000 a year ago. For the nine months, the loss was $16.7 million. In 2002, the company took a $2.4 million charge for an accounting change, leading to a nine-month loss of $272,000.
To reflect its diminishing sales base, Bush has restructured this year, cutting corporate jobs and consolidating manufacturing. Paul Bush, chairman and chief executive officer, said cost containment will continue with "aggressive efforts."
"Our objective throughout 2003 has been to restructure the company to meet the needs of the changing markets that we participate in," he said.
Efforts to improve sales at Bush Furniture are beginning to "bear fruit," Bush said, citing the expansion of the Eric Morgan line of assembled case goods as well as new small office-home office lines that office product superstores are testing or already selling.
For the fourth quarter, the company is projecting sales in the range of $83 million to $88 million, and a slight loss because of restructuring in the Bush Furniture Europe and Bush Technologies divisions.
| Bush Inds. | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are loses or declines. | |||
| Quarter ended 9/2720032002Change | |||
| (a) Includes pretax restructuring charges of $993,000 in the 2003 quarter and $9.7 million in the 2003 nine months and income tax benefits of $2.1 million in the 2003 quarter and $8.5 million in the 2003 nine months. (b) Includes a $2.4 million extraordinary charge, the cumulative effect of an accounting change. |
|||
| Sales | $79,004,000 | $84,411,000 | (6.4%) |
| Operating income | (2,796,000) | 2,858,000 | — |
| Net income | (a)(3,643,000) | 492,000 | — |
| Earnings per share | (0.26) | 0.04 | — |
| 9 months ended 9/27 | 2003 | 2002 | Change |
| Sales | $224,697,000 | $251,672,000 | (10.7%) |
| Operating income | (9,887,000) | 9,213,000 | — |
| Net income | (a)(16,678,000) | (b)(272,000) | — |
| Earnings per share | (1.21) | (0.02) | — |
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