American Furniture posts profit as sales inch up 1.7%
May 8, 2013,
ECRU, Miss. — Upholstery producer American Furniture Mfg. reported a first-quarter sales increase of 1.7% as the company reversed a net loss from last year's first quarter.
The financial report, included in a Securities and Exchange Commission filing by parent company Compass Diversified Holdings, also showed that American recorded an operating profit of $573,000, nearly double the operating profit of $273,000 in the same quarter last year.
Net income totaled $94,000, which reversed a net loss of $177,000 in the first quarter of 2012.
Net sales for the quarter were $30.82 million, up from $30.29 million in the comparable quarter. Compass said the sales increase was due largely to the introduction of a power motion upholstery line. Stationary upholstery sales were flat.
Compass hired a new president and senior management team at American last fall, and American executives said a revamped product line received overwhelmingly positive reviews at last month's High Point Market.
The company will begin shipping the new products in late summer and early fall.