Amisco sales, earnings slump in 4th quarter, year
By Furniture Today Staff -- Furniture Today, March 6, 2005
L'Islet, Quebec — L'Islet, Quebec— Citing skyrocketing steel prices and Asian competition, metal furniture maker Amisco reported slumping sales and earnings in its fourth quarter and year.
Sales in the fourth quarter ended Nov. 30 dropped 8% to C$12.7 million from C$13.8 million in last year's final period. Net earnings plunged 32.9% to C$738,000 from C$1.1 million in the prior year.
For the year, sales were C$49.1 million, down 4.7% from the previous year's C$51.5 million, while net earnings declined 28.5% to C$2.4 million from 2003's C$3.4 million.
"Amisco achieved a very respectable performance in 2004 considering the greater competition from Asian manufacturers and the sharp rise in steel prices," said President and CEO Réjean Poitras. "We continue to implement a number of initiatives that will ultimately enable us to increase our sales and operating profitability."
The company said sales to U.S.-based retailers fell 7.3% from C$36.5 million in 2003 to C$33.8 million last year. "This decrease was due in part to the withdrawal of the office furniture line in the second quarter of fiscal 2003," Poitras said. U.S. exports accounted for 69% of Amisco's 2004 shipments.
On the positive side, selling and administrative expenses fell from C$9.9 million in 2003 to C$9.2 million last year, but that wasn't enough to prevent a slide in the net profit margin, which landed at 4.9% from 6.6% in 2003. Amisco attributed the profit margin decrease primarily to the decline in sales and higher steel prices.
Poitras believes the company is well positioned for growth. "Amisco makes some 600,000 items of personalized furniture which are shipped in less than 10 days," he said. "Thus, we have mastered the art of mass personalization, a major advantage that Asian manufacturers cannot offer their North American customers."
Chairman Martin Poitras noted Amisco has paid dividends for 18 years. The company recently set a semiannual dividend of 20 Canadian cents per share in May and November 2005, double the dividend paid over the past five years.
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