Furniture Brands profits rise despite 14.3% sales decline
Larry Thomas -- Furniture Today, 5/1/2008 7:05:00 AM
Earnings from continuing operations more than doubleST. LOUIS — Furniture Brands International said its sales fell 14.3% in the first quarter, but profits from continuing operations more than doubled.
The company said the results, which were consistent with a preliminary earnings announcement issued April 17, show that a major restructuring plan announced last fall is having a positive impact.
“We expect improvements in profitability to continue as we complete our transition to a branded consumer products company,” said Ralph Scozzafava, chairman and CEO.
Sales for the quarter ended March 31 totaled $477.2 million, compared with $557 million in last year’s first quarter. Earnings from continuing operations for the quarter totaled $3.75 million or 8 cents per share, up from $1.3 million or 3 cents per share a year ago.
Net earnings, including results from discontinued operations, totaled $33.6 million or 69 cents per share, compared with $2.9 million or 6 cents per share a year earlier. Discontinued operations primarily include contract unit Hickory Business Furniture, which was sold earlier this year.
Furniture Brands also announced that its board had formally elected Scozzafava chairman to replace the retiring Mickey Holliman. In addition, board member Aubrey Patterson was named lead director to replace longtime board member Richard Loynd, who plans to retire from the board once a qualified replacement is found.
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