Writedown, Rising Costs Hurt Flexsteel
Larry Thomas -- Furniture Today, February 21, 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 onetime 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."
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