FBI 2Q profits fall 42.2%
Sales flat; Holliman cites Broyhill weakness
By Janice Chamberlain -- Furniture Today, July 31, 2005
St. Louis — No.1 furniture maker and importer Furniture Brands International posted second-quarter sales of $593.8 million, up marginally over the comparable 2004 period, as net income fell 42.2% to $9.6 million from $16.6 million in the year-earlier period.
Chairman and CEO Mickey Holliman said business conditions remained challenging in the latest quarter, with strength at one company offset by another, with the weakness most pronounced at Broyhill.
"Several of our brands, including Thomasville, saw year-over-year increases in sales, but those increases were not in sufficient amount to offset the weakness at the middle end," said Holliman in a conference call with analysts. He said sales at Lane and the HDM division were essentially flat. The division is comprised of Henredon, Drexel Heritage and Maitland-Smith.
For the six months, FBI's sales slipped 2.8% to $1.2 billion from $1.3 billion in the first six months of 2004. Net profits dropped 31% to $34.4 million.
During the conference call, Holliman said FBI companies currently have 256 single-brand stores, up 53 stores, or 26%, from the second quarter of 2004.
FBI is continuing to implement its six strategic initiatives, which include upgrading the quality of its management team. Holliman said the company has added four upholstery experts to drive that business, among other changes.
He pledged to improve earnings performance by "identifying the best balance between lower-cost sourcing and domestic manufacturing efficiencies, and by optimizing our logistic efforts." FBI sourced 36.3% of its product overseas in the latest quarter, up from 33.7% for all of 2004.
Looking ahead, FBI expects third-quarter sales to be down in the mid-single-digit range, with earnings per share of 14 cents to 18 cents, including the effect of six cents in previously announced restructuring, asset impairment and severance charges.
| Furniture Brands International | |||
|---|---|---|---|
| Owns Broyhill, Drexel Heritage, Henredon, Lane, Maitland-Smith and Thomasville | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 6/30 | 2005 | 2004 | Change |
| (a) Includes after-tax restructuring, asset impairment and severance charges of $7.9 million in the 2005 quarter and $10.4 million in the 2005 six months. (b) Includes after-tax restructuring and asset impairment charges of $2.3 million in the 2004 quarter and $3.3 million in the 2004 six months. Both periods also include a $5.3 million after-tax charge related to the loss of collectibility of a receivable. (c) Based on average shares outstanding of 52.8 million in the 2005 quarter, 55.9 million in the 2004 quarter, 53.2 million in the 2005 six months and 56.5 million in the 2004 six months. |
|||
| Sales | $593,753,000 | $593,088,000 | 0.1% |
| Operating income | 16,626,000 | 29,263,000 | (43.2%) |
| Net income | (a)9,591,000 | (b)16,602,000 | (42.2%) |
| Earnings per share (c) | 0.18 | 0.30 | (40.0%) |
| 6 months ended 6/30 | 2005 | 2004 | Change |
| Sales | $1,235,318,000 | $1,270,649,000 | (2.8%) |
| Operating income | 55,147,000 | 85,489,000 | (35.5%) |
| Net income | (a)34,375,000 | (b)49,811,000 | (31.0%) |
| Earnings per share (c) | 0.65 | 0.88 | (26.1%) |
| Select Comfort | |||
|---|---|---|---|
| Earnings per share are fully diluted. | |||
| Quarter ended 7/2 | 2005 | 2004 | Change |
| (a) Based on average shares outstanding of 39 million in the 2005 quarter, 40.2 million in the 2004 quarter, 39.1 million in the 2005 six months and 40.1 million in the 2004 six months. |
|||
| Sales | $154,520,000 | $124,720,000 | 23.9% |
| Operating income | 12,181,000 | 9,059,000 | 34.5% |
| Net income | 7,862,000 | 5,735,000 | 37.1% |
| Earnings per share (a) | 0.20 | 0.14 | 42.9% |
| 6 months ended 7/2 | 2005 | 2004 | Change |
| Sales | $327,352,000 | $264,683,000 | 23.7% |
| Operating income | 25,829,000 | 20,677,000 | 24.9% |
| Net income | 16,504,000 | 13,068,000 | 26.3% |
| Earnings per share (a) | 0.42 | 0.33 | 27.3% |
-
FBI notes marginal 2Q sales improvement
Jul 28, 2005
Featured Company
-
FurnitureCore.com
FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more
VIEW ALL GALLERIES
