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Bassett sales up 4.5%, net income jumps 58%

By Furniture Today Staff -- Furniture Today, June 27, 2004

BASSETT, Va. -- Full-line manufacturer and importer Bassett Furniture Inds. reported sales of $80.4 million and net income of $1.9 million in its second quarter, increases of 4.5% and 58%, respectively, over the prior year's quarter.

And while it faces duties on wood bedroom furniture it brings in from China, Bassett's sources avoided the prohibitive 198.08% preliminary all-China rate imposed by the U.S. government.The company credited the second-quarter gains to increased shipments to Bassett Furniture Direct stores — up 11% year to date — and to greater demand for juvenile products.President and CEO Rob Spilman said, "We continue efforts to improve operating margins, with a primary focus on the profitability of our Wood Division."Six-month sales of $156.9 million were 1.6% ahead of the first six months of 2003, while net income of $4.2 million was a big improvement over a $5.2 million loss last year. Excluding one-time gains and restructuring charges associated with the respective periods, first-half 2004 income of $3.4 million still was much better than an adjusted $1.9 million profit for the same period in 2003.The BFD network continues to grow, with 104 stores currently in operation and another 14 expected to open in 2004, six in the third quarter and eight in the fourth. BFD shipments accounted for 57% of Bassett's first-half 2004 sales, compared to 52% for last year's first six months.Upholstery and import division performance was encouraging, and company-owned stores in Texas improved quarter to quarter, Bassett reported.Although Bassett sources bedroom furniture in China, it was one of the petitioning companies seeking U.S. antidumping duties on the category, and faces preliminary duties of 8% to 11%."We were fairly satisfied with the preliminary ruling by the Department of Commerce and do not believe this ruling will have a significant impact on our overall results," Spilman said. "We do hope the ruling will help deter further price deflation in our industry."

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Bassett sales up 4.5%, net income jumps 58%

Jul 11, 2004

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