Samson reports $40.2 million profit in '09
By Furniture Today Staff -- Furniture Today, April 5, 2010
HONG KONG —
Samson Holding, the parent company of Chinese case goods and upholstery producer Lacquer Craft, reported a profit of $40.2 million in 2009, despite a 15.7% decline in sales.
The company, whose stock is traded on the Hong Kong Stock Exchange, said last year's profit reversed a net loss of $18.5 million in 2008, when the company had one-time impairment charges of more than $59 million.
Sales totaled $393.4 million last year, compared with $466.6 million in 2008.
In his annual report to shareholders, Samson Chairman Samuel Kuo said the housing slump in the U.S. market — where the company generates nearly all of its sales — was primarily responsible for the sales drop. Samson sells under the brands of its U.S. operating companies Universal Furniture, Legacy Classic and Craftmaster.
“Retail sales at furniture stores in 2009 were at the lowest level in seven years,” Kuo wrote. “(But) amid challenging conditions, we managed to mitigate the negative impact on our overall business from the contraction in the furniture retail by creating additional sources of revenue from the new markets and segments, and by taking decisive and timely actions on improving productivity and cost structure.”
Samson Holding
Owns Lacquer Craft
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| Year ended 12/31 | 2009 | 2008 | Change |
| (a) Includes pretax impairment loss on sale of investments of $59.3 million in the 2008 year. (b) Earnings per share are fully diluted for 2009 year and basic for 2008 year. |
|||
| Revenues | $393,360,000 | $466,569,000 | (15.7%) |
| Operating income | 31,587,000 | 27,694,000 | 14.1% |
| Net income (a) | 40,240,000 | (18,470,000) | — |
| Earnings per share (b) | 0.01 | (0.01) | — |
Looking ahead, Kuo said 2010 “is a transitional year with great opportunities,” and said the company will continue to strengthen its product offerings and brand awareness while paying close attention to cost controls. He cited the growth at upholstery producer Craftmaster and the success of Universal's Paul Deen licensed collection as examples of that strategy.
He also said he hopes the company can grow by expanding its OEM business and said Samson is exploring the possibility of selling products within China.
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Samson rebounds to $40.2 million profit in 2009
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