Stanley third-quarter profits down 45.5%
Company projects loss in fourth quarter
Larry Thomas -- Furniture Today, October 16, 2007
STANLEYTOWN, Va. — Case goods major Stanley Furniture said its third-quarter sales were 3.6% below last year’s comparable period while profits plunged 45.5%.
The company blamed both shortfalls on the current industry-wide sales slump and said it doesn’t see a turnaround in the near term.
For the quarter ended Sept. 29, sales totaled $73.2 million, compared with $75.9 million in the 2006 period. Net income totaled $1.6 million or 16 cents per share, compared with $3 million or 29 cents per share a year earlier.
Jeff Scheffer, president and CEO, said the lower profits were the result of production inefficiencies from lower sales levels, increased raw materials costs and higher compensation costs.
“We do not foresee any improvement in the demand environment anytime soon and have lowered our expectations for the balance of 2007,” said Scheffer.
The company is projecting a fourth quarter net loss of 31 cents to 35 cents per share, including one-time charges of 26 cents per share from the recently announced closing of its factory in Martinsville, Va.
Fourth-quarter sales are projected at $62 million to $66 million, down 6.6% to 12.2% from last year’s fourth quarter.
For the first nine months of this year, sales fell 8.8% to $216 million. Net income, including a $6.6 million charge for terminating a pension plan, was $935,000 or 9 cents per share. In the first nine months of 2006, net income was $12.3 million or $1.01 per share.
-
Stanley 3Q profits plunge 45.5%
Oct 21, 2007
Featured Company
-
Wright Labels
Bill and Tom Wright founded Wright of Thomasville in 1961 on the idea that printing was a creative medium and the belief that "a promise made is a promise kept." The Wright brothers focused their attention on providing exceptional printing for the... more
VIEW ALL GALLERIES
