Chromcraft Revington profits off 26.7%
By Furniture Today Staff -- Furniture Today, July 28, 2003
Delphi, Ind. — Chromcraft Revington reported that net earnings dropped 26.7% in the second quarter as sales slipped 19.2% to $44.2 million.
Net profits for the quarter ended June 28 came to $1.6 million compared to $2.2 million in last year's first period.
For the six months, net earnings were $3.8 million compared to $5.5 million last year, before an accounting change. Sales in the first half of $93.6 million were 18.9% lower than the prior year's period.
Chromcraft Revington sells residential and commercial furniture under the brand names Chromcraft, Peters-Revington, Silver Furniture, Cochrane Furniture and Korn Inds. (Sumter Cabinet).
Michael Thomas, chairman, president and chief executive officer, said the ongoing weak economy and foreign imports continue to affect sales.
Sales in all furniture categories were down in the second quarter compared to last year, he said, with lower operating margins due primarily to fixed costs being spread over lower volume. Reduced sales at Cochrane, in particular, hurt operating income, and Thomas said the company has implemented cost-control programs.
Chromcraft Revington has committed to a blended strategy, importing low-cost, labor-intensive furniture components to supplement domestic manufacturing.
Thomas said current business conditions remain difficult, and recent order trends have not improved from second-quarter levels. The company expects third-quarter earnings per share will be between 32 and 42 cents per share.
| Chromcraft Revington | |||
|---|---|---|---|
| Owns Chromcraft, Peters-Revington, Cochrane, Silver and Sumter Cabinet | |||
| Earnings per share are fully diluted, and all figures in parentheses are loses or declines. | |||
| Quarter ended 6/28 | 2003 | 2002 | Change |
| (a) Includes a $26.7 million extraordinary charge, the cumulative effect of an accounting change. | |||
| Sales | $44,166,000 | $54,660,000 | (19.2%) |
| Operating income | 2,866,000 | 4,040,000 | (29.1%) |
| Net income | 1,589,000 | 2,169,000 | (26.7%) |
| Earnings per share | 0.38 | 0.52 | (26.9%) |
| 6 months ended 6/28 | 2003 | 2002 | Change |
| Sales | $93,597,000 | $115,474,000 | (18.9%) |
| Operating income | 6,724,000 | 9,536,000 | (29.5%) |
| Net income | 3,780,000 | (a)(21,229,000) | — |
| Earnings per share | 0.90 | (3.37) | — |
