Amisco sales down 6.3%, profit off 8.9% in 4Q
By Furniture Today Staff -- Furniture Today, March 19, 2006
L'Islet, Quebec — L'Islet, Quebec— Increased Asian competition, the strengthening Canadian dollar and retail consolidation in North America created a drag on sales and earnings for metal furniture maker Amisco Inds. in its fourth quarter and year ended Nov. 30.
Sales in the fourth quarter were C$11.9 million, down 6.3% from C$12.7 million in the same quarter a year earlier. Net earnings dropped 8.9% to C$672,000 or 16 Canadian cents per share from C$738,000 or 19 cents per share in the previous year's final quarter.
For the year, sales totaled C$44.1 million, off 10.2% from C$49.1 million last year. Net earnings came to C$2.1 million or 52 Canadian cents per share, down 12.5% from last year's C$2.4 million or 62 cents per share.
"In 2005, Asian competition intensified, our currency further increased in value and the consolidation among furniture retailers continued," said Chairman, President and CEO Réjean Poitras.
"Due to our employees' sustained efforts and our advantageous forward exchange contracts, we nonetheless ended the year with a solid performance," he said. "In fact, we maintained our gross and net profit margins despite the 10% decline in our sales."
He said sales in Canada fluctuated very little, while sales to retailers in the United States dropped from C$33.8 million in the 2004 fiscal year to C$29.1 million in 2005. Sales to the United States fell from 69% of total revenues in 2004 to 66% last year.
Amisco also said that Martin Poitras has retired as chairman of the board and would no longer be involved in day-to-day operations. He was president or chairman of the company for over 40 years, and remains its controlling shareholder.
Réjean Poitras has added the chairman's post to those of president and CEO, which he has held for several years. Claude Poitras, vice president of finance and administration, has joined the board.
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Weak retail, strong currency hurt Amisco
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Amisco sales, earnings slump in 4th quarter, year
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