Furniture Brands posts $23.5 million loss
Third-quarter sales decline 28.9%
Larry Thomas -- Furniture Today, November 5, 2009
ST. LOUIS — Furniture Brands International reported a third-quarter net loss of $23.5 million Wednesday as sales fell 28.9%.The net loss, which equals 48 cents per share, was well below the loss registered in last year's third quarter, when the company lost $41.7 million, or 86 cents per share.
Ralph Scozzafava, chairman and CEO, said that despite the sales shortfall, the company's balance sheet remains strong. He pointed out that gross margin for the quarter was 23.1% - an improvement of nearly seven percentage points over last year's third quarter - and noted that debt has been reduced by nearly $200 million since the third quarter of 2007.
"Furniture Brands' actions during this unprecedented economic downturn have enabled the company to improve its balance sheet and gross margin while creating the opportunity for significant earnings leverage that will enhance financial results as industry fundamentals stabilize and improve," Scozzafava said.
He said he believes gross margin can be further improved by additional consolidation of the supply chain, lean manufacturing processes, shared services among its operating companies, and continued reliance on consumer-tested products.
"Many of the revenue-enhancing initiatives the company has implemented in the past 18 months have been hindered by the severe decline in consumer spending," he added. "These programs are building traction and in a more stable marketplace will help product the operating leverage that has always been a key focus of our strategic plan."
Sales for the quarter ended Sept. 30 totaled $293.7 million, down from $412.8 million in the same quarter last year.
The most recent quarter's loss included about $7.1 million in one-time charges from factory downtime, severance costs, and expenses from closed retail stores.
Last year's third quarter included about $48.4 million in one-time charges - the largest components being $15.6 million in inventory write-downs and $13.6 million in bad debt charges.
For the nine months ended Sept. 30, sales were $938.8 million, a drop of 29.9% from the first nine months of 2008.
The nine-month net loss totaled $43.7 million or 90 cents per share. That compares with a loss of $32 million or 66 cents per share in the first nine months of last year.
Furniture Brands is the parent company of Broyhill, Lane, Thomasville, Drexel Heritage, Henredon and Maitland-Smith.
-
I think it is funny that they post this much loss and Yahoo reported their BONUSES for the year.
How does a company who reports losses defend giving their CEO, CFO and President such outrageous bonuses!! No wonder they are in trouble. Put $7 million dollars back into the company and reinvest for your customers. Greedy, Greedy, Greedy. Just as bad as those bankers.
Mr. Ralph P. Scozzafava , 52
Chairman and Chief Exec. Officer $ 3.70M BONUS
Mr. Steven G. Rolls , 55
Chief Financial Officer and Sr. VP $ 1.88M BONUS
Mr. Jeffrey L. Cook , 54
Pres of Broyhill Furniture Industries Inc $ 1.96M BONUS
J. Davidson - 2010-22-1 14:13:20 EST -
Furniture Brands and each of it's divisions is a sinking ship. I encourage all retailers to stop buying their products.
Virginia Retailer - 2009-11-11 12:20:51 EST -
As one guy said, " The chickens are coming home to roost" with this Company.
WD - 2009-6-11 16:45:15 EST -
We will just have to let GOD deal with them..Sooner or later I am sure the SEC will find out the truth..I work for a supplier to them and they flat out robbed them, didn't pay for the merchindise and would not reply to any corospondence. What is the profit margin we you pay nothing for a product???There high paid legal staff is waiting for you.Do you think a little guy can afford to even go against them?It's a team of white collar criminals...That's the fact, I hope they have to suffer as they have made others someday...
Janet Praid - 2009-5-11 17:36:50 EST -
What happened to Ralph Lauren, Lillian August, the Thomasville TRIO collection? Cut costs, ruin quality, and still charge a high price. Just when you think every corner has been cut, there's another one. Maybe you can pour your own foam and put sand in it like the Chinese.
former friend - 2009-5-11 16:23:44 EST
FBI trims loss to $23.5M
11/08/2009FBI sales fall 35.9% in 2Q
08/10/2009FBI sales drop 9.2% in third quarter
10/31/2007Furniture Brands reports 35.9% sales decline
08/05/2009FBI sales decline 9.2% in 3Q
11/03/2007
VIEW ALL GALLERIES