Bestar rebounds to profit in third quarter
Sales decline 17.2% for ready-to-assemble furniture maker
Michael Knell -- Furniture Today, November 12, 2009
LAC MEGANTIC, Quebec — Revenues for Bestar Inc. fell 17.2% during the third quarter, but the ready-to-assemble furniture maker generated a small profit.Revenue amounted to C$8.7 million. The company posted a profit of C$65,000, compared with a loss of C$160,000 in the comparable quarter of 2008.
Gross revenues for the first nine months of 2009 were C$28.8 million, off 7.5% from a year earlier. Net earnings for the year to date were C$272,000 or 2 cents per share, compared with a net loss of C$540,000 or 4 cents per share for the first nine months of 2008.
"The current economic recession continues to affect our furniture sales at several of our U.S. customers. Despite the economic slowdown, a favorable exchange rate on sales, a reduction in fixed expenses and a reduction in our inventories since the beginning of 2009 have allowed Bestar to improve its overall financial condition," Bestar President and CEO Paulin Tardiff said in a statement.
Tardiff added that the company has "begun to see encouraging signs of economic improvement," although he said a pickup in demand for furniture - especially office furniture - "may be somewhat delayed."
"We take the opportunity of this economic slowdown to focus our efforts on standardization, increased productivity and going forward with just-in-time management systems," he said. "While growth perspectives are still uncertain, we are preparing the way and will be ready when the economic turnaround arrives."
Bestar 3Q revenues slip 17.2%
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