Amisco 3Q sales drop 20.4%; net loss cut
Metal specialist cites U.S. problems, strong Canadian dollar, imports
Michael J. Knell -- Furniture Today, October 1, 2007
L’ISLET, Quebec — Amisco saw sales drop 20.4% in its third quarter, although the metal furniture maker narrowed its net loss.
Sales for the quarter ended Sept. 1 totaled C$7.2 million, down from C$9.1 in the third quarter of 2006. The net loss came to C$22,817 or one-half Canadian cent per share, compared with a net loss of C$106,266, or 2.6 cents per share, last year.
Sales in Canada were C$2.9 million in the quarter, a drop of about 5.4%, but sales to retailers in the United States fell 28.1% from C$6 million a year ago to C$4.3 million.
Amisco Chairman and CEO Réjean Poitras attributed the decline to volatility in the U.S. residential mortgage market which has lead to a rise in interest rates and defaults, hurting consumer confidence and buying power. He also noted that competition from Asian manufacturers continues to be intense throughout the North American marketplace.
During the third quarter, the Canadian dollar continued to strengthen vis-à-vis the U.S. greenback. In U.S. dollars, sales to U.S.-based retailers fell 19.6% in the third quarter.
On a positive note, Amisco said selling expenses decreased 14.2% in the quarter, while administrative expenses fell 15.1%, resulting in a boost in gross margin from 17.5% to 19.6% quarter-over-quarter.
However, for the first nine months of the fiscal year, Amisco remains profitably although sales are down 17.1%.
For the nine months, sales fell 17.1% to C$22.6 million, including a decline of 8.5% in Canada and 21.5% in the United States (17.8% in U.S. dollars). Net earnings came to C$407,252, or 10 Canadian cents per share, compared to a net loss of C$169,641, or 4 cents per share, in the 2006 nine months.
Reductions in manufacturing costs resulted in an improved gross margin of 23.4% in the nine months, up about 2.3 points year-over-year, while the appreciation of the Canadian dollar had a negative impact of C$155,187 on the company’s bottom line.
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Amisco 3Q sales off 20.4%; loss cut
Oct 21, 2007
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