Quaker sales up 10.4% for year
By Furniture Today Staff -- Furniture Today, February 23, 2003
Fall River, Mass. — Despite a weak fourth quarter, Quaker Fabric ended its 2002 fiscal year with sales up 10.4% and net income 21% above the previous year.
The fabric powerhouse reported sales for the year ended Jan. 4, 2003, of $365.4 million, an increase of $34.3 million over fiscal 2001. Net income for fiscal 2002 was $11.6 million, compared to $9.5 million in 2001.
Sales for the fourth quarter were down 8.6% to $82.5 million. Net income dropped 62.3% to $1.2 million from $3.1 million in last year's closing quarter. The weakness was attributed to a nearly 9% reduction in domestic sales, compared to the year before, as well as a significant reduction in yarn sales and a slowdown in the overall order rate.
Larry Liebenow, Quaker's president and chief executive officer, said in a conference call the company is well-positioned going into 2003.
Initiatives for the year include continuing to execute the core strategy, maintaining commitment to new technologies and innovation, continuing aggressive pursuit of export business, and building on success in the top-of-the-bed and contract markets, he said.
Liebenow also said the company is looking forward to several new free-trade agreements taking effect soon, including those with Singapore and Chile, as well as one with Australia, which is being negotiated.
Quaker's export sales in 2002 were up about 16% over 2001.
Despite the difficult global economic environment, Liebenow said the company's increases in sales and income for the year "confirm that Quaker has what it takes to continue to outperform the industry. The reason for our success to date has been our ability to execute our core strategy — a proven approach that is focused on the fundamentals and that consistently delivers great products and service to our customers."
Demand has "picked up nicely since the first of the year," he said, "with our average weekly incoming order rate so far running approximately 20% ahead of the 14-week fourth quarter."
He said average delivery lead time is now at about five weeks, which has helped reduce backlog by 39% over last year.
| Quaker Fabric | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 1/4 | 2003 | 2002 | Change |
| (a) Includes a $800,000 pretax non-recurring charge. | |||
| Sales | $82,492,000 | $90,256,000 | (8.6%) |
| Operating income | 3,084,000 | 5,821,000 | (47.0%) |
| Net income | 1,155,000 | (a)3,065,000 | (62.3%) |
| Earnings per share | 0.07 | 0.19 | (63.2%) |
| Year ended 1/4 | 2003 | 2002 | Change |
| Sales | $365,445,000 | $331,105,000 | 10.4% |
| Operating income | 23,067,000 | 19,827,000 | 16.3% |
| Net income | 11,556,000 | 9,548,000 | 21.0% |
| Earnings per share | 0.69 | 0.58 | 19.0% |
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