Flexsteel sales flat but profit falls on writedown, rising costs

Says order rate improved slightly in latest quarter

Larry Thomas -- Furniture Today, February 4, 2011

DUBUQUE, Iowa — Upholstery and case goods resource Flexsteel Inds. said sales for the quarter ended Dec. 31 were essentially even with the same quarter in 2009, but profits slid 28.1% as the company was hampered by rising raw materials costs and a one-time inventory writedown.

Sales for the most recent quarter - the second quarter of Flexsteel's fiscal year - totaled $82.8 million, down 0.8% from $83.5 million in the quarter ended Dec. 31, 2009.

 

Net income in the most recent quarter was $2.13 million or 31 cents per share. In the comparable quarter in 2009, the company earned $2.96 million or 45 cents per share.

The most recent quarter included a $600,000 inventory writedown stemming from the closing of a manufacturing facility.

The financial picture was brighter for the six months ended Dec. 31, as net income rose 3% to $4.47 million or 65 cents per share. The most recent period included one-time charges of $1.02 million related to the factory closing

Six-month sales totaled $170.1 million, an increase of 6.6% from $159.5 million in the six months ended Dec. 31, 2009.

The company said residential furniture sales rose 8.4% to $128.8 million the most recent six-month period.

"Our residential furniture incoming order rate slowed during the first quarter, but improved slightly as we moved through the second quarter," the company said in a statement accompanying the quarterly figures. "Our balance sheet remains strong with working capital in excess of $95 million and no bank borrowings."