Bestar 4Q revenues off 8%
By Furniture Today Staff -- Furniture Today, March 6, 2005
Lac-Mégantic, Quebec — Increased Asian competition, rising raw materials and transportation costs and a strengthening Canadian dollar dragged down fourth quarter and yearly revenues and earnings for ready-to-assemble producer Bestar.
Revenues in the final quarter came to C$9.7 million, an 8% drop from C$10.5 million in the prior year. The net loss was C$894,000, compared to a net loss of C$10,000 in 2003.
"A restructuring charge of C$944,000 is the main factor contributing to losses in the fourth quarter of 2004," said Chief Financial Officer Martin Lamontagne.
For the year, revenues of C$43.7 million represented a 1.3% dip from C$44.3 million in 2004. The 2004 net loss was C$442,000, compared to net earnings of C$254,000 in 2003.
Lamontagne said 2003's profits were driven by a C$2 million gain on the sale of U.S.-dollar financial instruments, while 2004's net loss was eased by C$1.3 million in investment income from a private placement in Panomeg, a Quebec-based firm. He noted that sales seem to have stabilized after three years of decline.
Restructuring charges for all of 2004 came to C$1.4 million, including the closing of the Montreal sales office and the consolidation of all operating activities in Lac-Mégantic.
Lamontagne is confident Bestar is poised to grow, citing new marketing methods, operating improvements, introduction of new performance measures and creation of independent work teams.
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Bestar 4Q revenues off 8%
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