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Bestar's sales fall 7.3% in third quarter

Michael Knell -- Furniture Today, November 8, 2011

LAC-MEGANTIC, Quebec — Ready-to-assemble furniture specialist Bestar's sales fell 7.3% in the third quarter and the company posted a loss as demand for its product waned in a tough economic environment on both sides of the border.

Sales of C$8.2 million were down from C$8.9 million in the same period last year. The decline was attributed equally to falling sales in both Canada and the United States as well as the continuing strength of the Canadian dollar vis-à-vis its U.S. counterpart.

The net loss for the period was C$198,192 or 2 cents per share, compared with a net profit of C$3,348 or zero cents per share for the third quarter of 2010. Bestar said the biggest contributor to the negative result was a foreign exchange loss of C$195,464.

For the nine months that also ended on Sept. 30, Bestar's revenues of C$25.1 million were down 25.6% from the same period in 2010. However, the net loss was narrowed to C$296,000 or 2 cents per share from a loss of C$847,000 or 7 cents per share.

Bestar also announced the resignation of longtime board member Rene Hetu. Succeeding him is Francine Turmel, dean of the school of business at Sherbrooke University.

Also named to the board was Francois Giroux, executive vice president and CEO of Novik Inc., a Quebec-based manufacturer of exterior polymer siding products. He previously was president and CEO of Allianz Madvac and as president of office furniture specialist Haworth/Groupe Lacasse for eight years.

"With over 30 years of experience in upper management positions, Mr. Giroux demonstrates proven competence in strategic planning," Bestar said in announcing his appointment.

Looking ahead, Bestar president Daniel Mercier said he doesn't anticipate any significant improvement in performance without equally significant improvements in the North American economy.

"Even if our results have slightly improved over last year's, they remain below our expectations," Mercier said in a statement. "The weakness of the U.S. currency, combined with a weak recovery of the North American economy in our sector, limit the growth potential for the coming months. However, we are continuing our efforts, including the search for strategic partners, to improve the present situation."

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Bestar reports loss in quarter as sales fall 7.3% to C$8.2M

Nov 16, 2011

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