FBI sales fall 11.9%
By Furniture Today Staff -- Furniture Today, February 4, 2008
St. Louis — Sales fell 11.9% in the fourth quarter and 11.8% in 2007 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.
Scozzafava 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.
"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."
| Furniture Brands International | |||
|---|---|---|---|
| Owns Broyhill, Drexel Heritage, Henredon, Lane, Maitland-Smith and Thomasville | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 12/31 | 2007 | 2006 | Change |
| (a) Includes earnings from discontinued operations of $1.1 million in the 2007 quarter, $1 million in the 2006 quarter, $5.6 million in the 2007 year and $5.1 million in the 2006 year. Includes restructuring charges of $38 million in the 2007 quarter, $1.2 million in the 2006 quarter, $85 million in the 2007 year and $200,000 in the 2006 year. Also includes income tax benefit of $25.2 million in the 2007 quarter, $3.1 million in the 2006 quarter and $29.3 million in the 2007 year. | |||
| Sales | $504,786,000 | $572,843,000 | (11.9%) |
| Operating income | (63,723,000) | 1,601,000 | — |
| Net income (a) | (40,678,000) | 2,058,000 | — |
| Earnings per share | (0.84) | 0.04 | — |
| Year ended 12/31 | 2007 | 2006 | Change |
| Sales | $2,082,056,000 | $2,361,680,000 | (11.8%) |
| Operating income | (53,339,000) | 75,539,000 | — |
| Net income (a) | (45,649,000) | 55,055,000 | — |
| Earnings per share | (0.94) | 1.13 | — |
