Stanley 2Q sales up 15.8%
Net income up 11.8%
Janice Chamberlain -- Furniture Today, July 19, 2005
STANLEYTOWN, Va. -- Case goods manufacturer and importer Stanley Furniture posted double-digit increases in sales and earnings in its quarter and six months ended July 2.
Second-quarter sales jumped 15.8% to $83.6 million from $72.2 million in the same quarter in 2004. Net income in the latest quarter grew 11.8% from $5.2 million a year ago to $5.8 million.
The company said it was the 13th consecutive quarter of sales growth over the comparable prior-year quarter, and the seventh consecutive quarter of double-digit sales gains.
In the six months, sales rose 15.9% to $166.6 million from 2004’s first half, with net profits skyrocketing 18% to $11.6 million from $9.8 million a year ago.
Operating income of $9.4 million in the latest quarter was 11.2% of sales. Stanley said operating margins have remained consistently strong, ranging from 11.1% to 11.3% of sales in each of the last four quarters.
The company said higher raw material costs, compensation costs, energy costs, freight costs, increased warehouse expense and tariffs imposed on wooden bedroom furniture imported from China boosted operating costs, but that was offset by higher sales, increased production levels and operating efficiencies.
Chairman, President and CEO Jeffrey Scheffer said, “For the most recent four quarters, our sales have increased 15.7% from the previous four-quarter period. Blending efficient domestic manufacturing in our highly focused facilities with strategic outsourcing of certain component parts and finished goods has allowed us to improve the styling and value of our products.
“Combining this with our culture and reputation for high quality and fast delivery differentiates us from our competition. We enter the second half (of 2005) with considerable momentum and have raised our earnings guidance for 2005,” he said.
In a conference call with analysts, Scheffer said the quarterly results were testimony to customer response to the company’s products, fast delivery and high quality.
During the call, Executive Vice President of Finance Douglas Payne said sourced items represented about 30% of sales in the latest quarter, and are expected to remain at that level throughout the rest of the year.
Payne said that through the first six months of 2005, capital expenditures were $2.7 million, and Stanley expects that amount to grow to between $5.5 million and $6.5 million for all of 2005.
Stanley now projects sales in 2005 to be in a range of $334 million to $340 million, an increase of 9% to 11% over 2004. Earnings per share are expected to be $1.78 to $1.85, compared with $1.59 last year.
For the quarter ending Oct. 1, Stanley projects sales in a range of $82.5 million to $85.5 million, an increase of 5% to 9% over the third quarter of 2004. The company expects earnings per share of 44 cents to 47 cents, up from record earnings of 40 cents in the year-ago quarter.
Stanley’s board of directors has declared a quarterly cash dividend of six cents per share, payable Sept. 6 to shareholders of record on Aug. 12.
-
Stanley sales, earnings up
Aug 7, 2005
VIEW ALL GALLERIES
