Quaker 2Q sales off 5.8%
Net loss in quarter tops $10M
By Furniture Today Staff -- Furniture Today, July 31, 2005
Fall River, Mass. — Pounded by market conditions, Quaker Fabric reported second-quarter sales fell 5.8%, with sales for the first six months plummeting 18.7%.
Sales in the quarter ended July 2 were $68.9 million, down from $73.1 million in the comparable 2004 period. Sales in the latest six months came to $128.1 million, compared with $157.5 million in the year-earlier period.
The net loss in the latest quarter grew to $10.3 million from $428,000 last year, with the six-month loss reaching $13.4 million, compared with net profits of $2 million a year ago.
President and CEO Larry Liebenow said, "Domestic market conditions — particularly the strength of imported leather and faux suede products, excess inventory throughout the distribution chain and the deflationary effects of heavy competition from both domestic and foreign fabric suppliers — continue to negatively affect our top-line performance."
He said domestic fabric sales in the latest quarter of $50.4 million were off 13.3%, international fabric sales were flat and yarn sales showed significant growth. For the first six months, domestic sales were down 24.3%, international sales dropped 13% and yarn sales grew 30.1%.
| Quaker Fabric | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 7/2 | 2005 | 2004 | Change |
| (a) Includes a $3.7 million pretax restructuring and asset impairment charge in both periods, a $2.2 million pretax charge for the early extinguishment of debt in both periods and income tax benefits of $4.2 million in the 2005 quarter and $6.4 million in the 2005 six months. (b) Includes a $324,000 income tax benefit. (c) Based on average shares outstanding of 16.8 million in the 2005 periods, 17.1 million in the 2004 quarter and 17.2 million in the 2004 six months. |
|||
| Sales | $68,885,000 | $73,132,000 | (5.8%) |
| Operating income | (2,432,000) | 18,000 | — |
| Net income | (a)(10,342,000) | (b)(482,000) | — |
| Earnings per share (c) | (0.61) | (0.03) | — |
| 6 months ended 7/2 | 2005 | 2004 | Change |
| Sales | $128,100,000 | $157,516,000 | (18.7%) |
| Operating income | (6,900,000) | 4,688,000 | — |
| Net income | (a)(13,432,000) | 1,956,000 | — |
| Earnings per share (c) | (0.80) | 0.11 | — |
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Quaker 2Q sales down 5.8%
Jul 29, 2005
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