Chromcraft Revington reduces loss as sales decline 4%

Gross margin improves, expenses decline

Larry Thomas -- Furniture Today, August 18, 2010

WEST LAFAYETTE, Ind. — Manufacturer and importer Chromcraft Revington nearly halved its net loss in the second quarter as the company significantly improved its gross margin and reduced its expenses.

Sales for the three months ended July 3 fell 4% from the same period last year, to $14 million.

The net loss for the quarter totaled $1.3 million or 29 cents per share. That compares with a loss of $2.5 million or 53 cents per share in the same quarter last year.

The quarter's gross profit was $2.7 million or 19.1% of sales. In last year's second quarter, it was $1.7 million or 11.5% of sales.

Ronald Butler, chairman and CEO, said the restructuring activities the company began in 2008 have helped reduce the impact of the economic downturn, but said he believes the business climate will continue to be challenging for the remainder of the year.

 

"We continue to believe that when the furniture market improves, the company is well positioned to return to profitability," Butler said.

Chromcraft Revington ended the quarter with $6.5 million in cash and no bank debt.

For the six months ended July 3, sales fell 10.7% to $27.9 million. The six-month net loss totaled $2.3 million or 50 cents per share. In the first half of 2009, the loss came to $5.6 million or $1.22 per share.

The company markets products under the Chromcraft, Cochrane, Peters-Revington, Southern Living and CR Kids & Beyond brand names.