4th quarter profit keeps Amisco in black for year
By Michel J. Knell -- Furniture Today, March 18, 2007
L'islet, Quebec — L'islet, Quebec— Metal furniture specialist Amisco Inds. reported it salvaged a meager profit in the year ended Nov. 30 as sales dropped 20% to C$35.3 million.
A profitable fourth quarter kept Amisco out of the red for the year. A net profit of C$181,855 during the final 13 weeks brought earnings for fiscal 2006 to C$19,214, compared with C$2.1 million in 2005. Earnings per share fell from 52.4 Canadian cents in 2005 to zero in 2006.
"The reduction in sales and profitability was caused by Asian competition, the transformation of the retail furniture industry and, above all, the decline in the average rate used to convert its U.S. sales into Canadian dollars," said Réjean Poitras, chairman, president and CEO.
In Canada, sales for the year fell 17.9% below 2005 to C$12.3 million while U.S. sales declined by 21.2%, to C$23 million.
Shipments to retailers in the U.S. accounted for 65% of Amisco's volume in 2006.
Poitras said much of the U.S. sales decline stemmed from the changing exchange rate, as the U.S. greenback grew weaker against the Canadian dollar. Favorable hedging contracts kept the rate from hurting Amisco's sales even more, he said. Measured in U.S. dollars, Amisco's U.S. sales were down 4.8% for the year.
Despite productivity gains, the declining sales and problematic exchange rate sent Amisco's gross profit margin down to 20.6% from 26.1% a year earlier, Poitras said.
In the fourth quarter, sales declined 31.9% to C$8.1 million. Canadian sales fell 27% to C$3.1 million, while sales to retailers in the U.S. fell 35.1%, to C$4.9 million.
Despite the challenges, Poitras said Amisco remained in a strong financial position.
-
Amisco sales, profits fall in 2006
Feb 7, 2007
Specialty retailer LoveSac introduces new store design
Kincaid Furniture honors Jimmy and Rosalynn Carter for Habitat work
Omnia Furniture ends relationship with Kathy Ireland Worldwide
Belfort Furniture, Lawrance Furniture are NHFA Retailers of Year
Singapore furniture show expecting increased turnout
Featured Company
-
Brandwise Inc.
Brandwise serves a model - not just an industry - by integrating, automating, and optimizing the entire sales channel, from wholesale Suppliers to their Reps and the Retailers they service. In short, our software helps Reps and Suppliers sell more and create... more
VIEW ALL GALLERIES
