Furniture Brands International has net loss of $65 million in fourth quarter
Sales for furniture major fall 29.2%
Furniture Today Staff -- Furniture Today, February 4, 2010
ST. LOUIS — Furniture Brands International reduced its fourth-quarter net loss to $64.98 million as sales fell 29.2%.
The net loss, which equals $1.35 per share, was well below the loss recorded in the final quarter of 2008, when an asset impairment charge of more than $200 million led to a loss of $353.8 million.
This year's fourth-quarter sales totaled $285.6 million, down from $403.4 million in the fourth quarter of 2008.
Ralph Scozzafava, chairman and CEO, said the results "show the effect of the recession on consumer spending."
"The company's results also reflect decision to right-size the company and reduce our cost basis," he added. "These actions are good for our business in the long term."
Scozzafava said the company's balance sheet remains strong, and will be bolstered further with the receipt of a federal tax refund of $58 million to $60 million during the first half of this year. The refund stems from passage of the Worker, Home Ownership and Business Assistance Act on Nov. 9, which changed tax laws regarding operating losses for businesses.
Furniture Brands ended the year with $83.9 million in cash and $78 million in long-term debt.
For all of 2009, the company had a net loss of $108.7 million, or $2.25 per share. That compares with a loss of $385.9 million, or $7.92 per share, in 2008.
Sales in 2009 totaled $1.22 billion, down 29.8% from $1.74 billion in 2008.
"Our order trends appear to be stabilizing and the company's upholstery business is tracking with industry patterns, especially in the medium price points," Scozzafava said. "Sales in our higher-end brands continue to reflect a cautious attitude on the part of the luxury consumer."
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