Amisco sales fall 22.3% in quarter
Mainly because of weakness in U.S. market
Michael J. Knell -- Furniture Today, July 7, 2008
L’ISLET, Quebec — Sales and earnings continued to tumble for metal furniture specialist Amisco in its fiscal second quarter, driven mainly by the soft retail environment in the United States and ongoing unfavorable exchange rates.
For the three months ended May 31, Amisco said sales were C$6.1 million, down 22.3% from the same period in 2007.
Net earnings, meanwhile, were $91,068 or 2.3 cents per share, an 82.6% drop from the C$523,493 or 12.8 cents per share booked a year earlier. Amisco said that was primarily because of a downturn in investment income, to C$30,610 in the latest quarter from C$745,063 in the 2007 quarter.
The company’s sales in Canada were off slightly to C$2.7 million this year from C$2.9 in the 2007 quarter. However, U.S. sales fell 31% to C$3.4 million.
“This share decline is due mainly to the real estate crisis in the United States and the reduction in the rate used to convert sales into Canadian dollars,” Réjean Poitras, chairman, president and CEO. “In U.S. dollars, sales declined by 26.4% in the United States.”
On a positive note, the company said gross margins remained fairly high at 23.5% while selling and administrative expenses fell 24%.
For the first half, Amisco’s sales came to C$11.8 million, down 22.8% from a year earlier. Net earnings were C$18,624 or 0.5 cents per share, down sharply from C$430,069 or 10.6 cents per share for the same period last year.
However, the company noted that profitability in the first half of 2007 was driven mainly by a C$416,458 gain on investments.
