Keller sales down; 4Q loss cut
Powell Slaughter -- Furniture Today, March 17, 2003
Corydon, Ind. — Solid-wood case goods manufacturer Keller Furniture Mfg. reported sales of $8 million in the fourth quarter and $35.9 million for all of 2002, decreases of 14% and 17.1%, respectively.
The company said it lost $2.3 million for the quarter, compared with a loss of $3.8 million in the same period the prior year. Keller lost $4.3 million in 2002, compared with a $2.3 million loss in 2001.
Two fourth-quarter charges affected results. The first was a $1.2 million charge to write down inventory after Keller discontinued its PGA licensed product line. The second, was a $700,000 restructuring charge related to closing the company's plant in Culpepper, Va., last November.
The latter was part of a comprehensive plan to consolidate production at the company's plants in Corydon and New Salisbury, Ind.
"We anticipate the restructuring plan which we enacted in 2002 to have a positive effect on our operating results moving forward into 2003," said Steve Robertson, president and chief executive officer. "Our objectives are to stabilize, then increase our order generation, thus allowing our margins to come in line with our current cost structure."
