Stanley 1Q sales down 10.1%
By Larry Thomas -- Furniture Today, April 23, 2007
Stanleytown, Va. — Case goods major Stanley Furniture said first-quarter sales were 10.1% below last year's first quarter, while net income plunged nearly 70%.
The company attributed the drops to a continuing industry-wide sales slump. Lower sales and production levels caused operating inefficiencies that hurt margins, Stanley said.
"While we are disappointed with lower sales and earnings, we believe this is consistent with current industry-wide conditions," said President and CEO Jeff Scheffer.
Sales in the quarter totaled $75.1 million, down from $83.5 million in last year's first period. Net income came to $1.7 million, or 15 cents per share, compared with $5.4 million, or 43 cents per share, in the comparable period last year.
"Our business has stabilized over the past few months and we experienced little change in overall sales trends since late last year," Scheffer said. "Near term, we will continue to focus on controlling costs and inventories, and improving our product offerings."
The company said it expects second-quarter sales to come in at $69 million to $73 million, a decline from $77.5 million in last year's second quarter.
Second-quarter earnings are projected to be 19 cents to 23 cents per share, compared with 32 cents per share in the second quarter of 2006.
The second quarter projection does not include a one-time charge of $6 million to $6.5 million, or about 37 cents per share, stemming from termination of Stanley's defined-benefit pension plan.
Meanwhile, Stanley's board has declared a regular quarterly cash dividend of 10 cents per share, payable June 4 to shareholders of record on May 11.
| Stanley Furniture | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 3/31 | 2007 | 2006 | Change |
| (a) Based on average shares outstanding of 11.0 million in the 2007 quarter and 12.6 million in the 2006 quarter. | |||
| Sales | $75,108,000 | $83,524,000 | (10.1%) |
| Operating income | 3,079,000 | 8,630,000 | (64.3%) |
| Net income | 1,676,000 | 5,392,000 | (68.9%) |
| Earnings per share (a) | 0.15 | 0.43 | (65.1%) |
