Stanley sales tumble 25.6%
By Larry Thomas -- Furniture Today, October 19, 2008
STANLEY, Va. — Case goods resource Stanley Furniture said its third-quarter sales tumbled 25.6%, while restructuring charges led to a net loss of $3.5 million.
The loss, which equals 34 cents per share, compares with net income of $1.6 million or 16 cents per share in last year's third quarter.
Albert Prillaman, chairman and CEO, said the bedroom, dining room, home entertainment and home office categories were especially hard hit. The company's Young America youth furniture performed somewhat better, but still had a sales decline, he said.
“Excluding restructuring charges, operating income was near a break-even level due to the significant decline in sales,” said Prillaman. “This restructuring will lower our costs going forward and position the business for success when demand eventually improves.”
Without the restructuring charges, which primarily stemmed from the closing of its Lexington, N.C., plant, Stanley's net loss would have been 7 cents per share.
For the quarter ended Sept. 27, sales totaled $54.5 million, compared with $73.2 million in the same period in 2007.
Sales for the nine months ended Sept. 27 were $176.2 million, down 18.4% from the first nine months of last year.
The nine-month net loss of $2.5 million or 24 cents per share compares with net income of $935,000 or 9 cents per share in the same period last year.
Prillaman said orders in early October have tailed off significantly due to the credit crisis, but said he believes 2008 sales will still be within the range of $230 million to $237 million that was forecast in July.
In 2007, Stanley's sales were $282.8 million.
| Stanley Furniture | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| (a) Includes pension termination charge of $6.6 million in the 2007 nine months. Also includes restructuring charges of $2.8 million in the 2008 three months and $3 million in the 2008 nine months. |
|||
| Quarter ended 9/27 | 2008 | 2007 | Change |
| Sales | $54,483,000 | $73,181,000 | (25.6%) |
| Operating income | (5,616,000) | 3,141,000 | — |
| Net income (a) | (3,489,000) | 1,635,000 | — |
| Earnings per share | (0.34) | 0.16 | — |
| 9 months ended 9/27 | 2008 | 2007 | Change |
| Sales | $176,165,000 | $216,011,000 | (18.4%) |
| Operating income | (2,587,000) | 9,767,000 | — |
| Net income (a) | (2,509,000) | 935,000 | — |
| Earnings per share | (0.24) | 0.09 | — |
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