Samson Holding profits decline 32.3% in half
By Furniture Today Staff -- Furniture Today, September 21, 2008
HONG KONG — Chinese furniture major Samson Holding said its profit declined 32.2% in the first half as sales fell 9%.
Samson, parent of China’s Lacquer Craft Mfg. and its U.S. arms Universal Furniture, Legacy Classic and Craftmaster, said it had sales of $217.4 million in the six months ended June 30, down from $238.8 million in the same period a year earlier.
Earnings of $19.6 million were down from $28.9 million a year ago, the company said.
Management said it had taken steps to maintain its pricing, seek new business, enhance productivity and control costs. The moves included reducing inventories and receivables and also cutting its bank borrowings to $16.9 million on June 30, from $36.5 million at the end of last year.
“As a result, though we experienced a decline in sales and overall financial performance during the first half of the year, we still expect our performance in the upcoming second half of the year to be more encouraging to our management team and shareholders,” company officials said.
Samson said it expects the second half to be challenging, but said that its business model gives the company advantages over its peers.
“Recently, we have seen a recovery of order demand from our branded companies and also secured business relationships with OEM customers,” the company said.
Separately, Samson issued a statement denying rumors that it was negotiating or had agreed to make a major acquisition.
Hong Kong Stock Exchange officials had asked the company to comment after its stock price jumped 41.2% on Sept. 17. Samson said it was not aware of any reason.
| Samson Holding | |||
|---|---|---|---|
| Owns Lacquer Craft | |||
| All figures in parentheses are losses or declines. | |||
| 6 months ended 6/30 | 2008 | 2007 | Change |
| (a) Basic earnings per share. |
|||
| Sales | $217,357,000 | $238,793,000 | (9.0%) |
| Operating income | 15,863,000 | 25,204,000 | (37.1%) |
| Net income | 19,566,000 | 28,871,000 | (32.2%) |
| Earnings per share (a) | 0.007 | 0.01 | (30.0%) |
