CR loses $10.2M
By Jay McIntosh -- Furniture Today, November 16, 2008
WEST LAFAYETTE, Ind. — Furniture manufacturer and importer Chromcraft Revington said its loss ballooned to $10.2 million in the third quarter, largely because of $6.6 million in asset impairment and restructuring expenses, as sales declined 18.8%.
The loss was nearly five times the loss of $2.1 million posted in the same quarter last year. Sales of $23.1 million were down from $28.4 million a year ago.
For the first nine months of the year, sales of $76.1 million were down 19.9% from the same period in 2007. The loss was $18.5 million, compared with a loss of $6.6 million a year earlier.
Residential furniture shipments declined in all categories in the third quarter, the company said, while commercial furniture sales rose because of higher shipments of seating products. On the residential side, officials blamed the weak economy, competition from imports, restructuring activities and unsuccessful product intros.
Asset impairment and restructuring charges stemmed largely from the decisions this year to close plants in Lincolnton, N.C., and Delphi, Ind. They also include severance costs related to Chromcraft’s replacing its CEO and other senior managers in the third quarter.
Ronald Butler, chairman and CEO, said the restructuring moves are necessary to enable the company to compete more effectively. He said the company also is responding to the current weak business climate with spending controls and expense reductions, and is focusing on improvements in supply chain, product development and sales activities.
He also said the company has several sources of cash and liquidity to help it complete its transition.
| Chromcraft Revington | |||
|---|---|---|---|
| Owns Chromcraft, Peters-Revington, Cochrane, Silver and Sumter Cabinet | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 9/27 | 2008 | 2007 | Change |
| Sales | $23,071,000 | $28,412,000 | (18.8%) |
| Operating income | (9,837,000) | (3,377,000) | — |
| Net income | (10,167,000) | (2,081,000) | — |
| Earnings per share | (2.23) | (0.46) | — |
| 9 months ended 9/27 | 2008 | 2007 | Change |
| Sales | $76,139,000 | $95,028,000 | (19.9%) |
| Operating income | (17,945,000) | (10,630,000) | — |
| Net income | (18,450,000) | (6,560,000) | — |
| Earnings per share | (4.04) | (1.46) | — |
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