Chromcraft Revington posts $1.8 million loss as sales dip 10.3%

Furniture source reports first-quarter sales of $12.5 million

Larry Thomas -- Furniture Today, May 18, 2011

WEST LAFAYETTE, Ind. — Manufacturer and importer Chromcraft Revington said first-quarter sales slid 10.3%, and its net loss was nearly double the loss recorded in same quarter last year.

The company, which markets products under the Chromcraft, Cochrane, Peters-Revington, CR Kids and Beyond and Southern Living brand names, said sales for the quarter ended April 2 totaled $12.5 million. That's down from $13.9 million in last year's first quarter.

The net loss came to $1.8 million or 38 cents per share. In last year's first quarter, the loss totaled $980,000 or 21 cents per share.

The company said the results were due to weak consumer demand for residential furniture in its product and price segments. It said results also were hurt by higher unabsorbed fixed costs, an unfavorable product sales mix, and higher raw materials and freights costs.

"Our disappointing operating results for the current quarter reflect a continuation of the very challenging business environment and the lingering effects of the economic downturn as the labor and housing markets continue to struggle," said Ronald Butler, chairman and CEO. "In these uncertain times, we have diligently focused on our cash flow and balance sheet management along with controlling operating costs to be in line with our revenue base."

As of April 2, the company's balance sheet showed $3.8 million in cash and no outstanding loan balances.