FBI sales fall 11.9% in fourth quarter
CEO says company is making progress on plan
By Furniture Today Staff -- Furniture Today, January 31, 2008
ST. LOUIS — Sales fell 11.9% in the fourth quarter and 11.8% in the year for Furniture Brands International, the manufacturer and importer reported last week.
Weighted down with restructuring charges — $38 million pretax in the fourth quarter and $85 million in the full year — the company had net losses of $40.7 million in the quarter and $45.6 million for the year. That compared with net earnings in 2006 of $2.1 million in the fourth quarter and $55.1 million for the year.
Costly moves included closing 18 company-owned stores and five factories, cutting staff in its Lane, Thomasville, Drexel Heritage and Henredon divisions and reducing inventory.
CEO Ralph Scozzafava said the company has made progress on the strategic plan it announced last year, focusing on cash generation and balance sheet stability in 2007. He said the company ended last year with the most cash on hand and least debt outstanding at any year end since the company recapitalized in 1992.
To save more cash, Furniture Brands’ board also voted to slash the company’s quarterly dividend to 4 cents from 16 cents, payable Feb. 29 to shareholders of record on Feb. 11.
“In 2008, we will continue to drive toward increasing profitability through improved supply chain activities and by continuing the consolidation of corporate services,” said Scozzafava. “We are already seeing the positive effects of many of the cost-savings initiatives we undertook in 2007. As we progress through the year, we will see even greater benefits as we put many of the implementation costs behind us.”
As previously announced, FBI is on track to sell its Hickory Business Furniture contract unit during this quarter. In its latest results, the company reported HBF as a discontinued operation with earnings of $1.1 million in the fourth quarter and $5.6 million in the year.
For 2008, Furniture Brands projects sales (excluding HBF) of $1.9 billion to $2 billion and earnings of 40 to 60 cents per share, including any further restructuring charges.
Furniture Brands reports 35.9% sales decline
08/05/2009Furniture Brands posts $23.5 million loss
11/04/2009FBI sales fall 11.9%
02/02/2008FBI sales fall 17.6%
11/08/2008
