Stanley 2Q Sales Fall 28.4%
July 16, 2009
Stanley Furniture Co. Inc. (Nasdaq-NGS: STLY), Stanleytown, Va., reported Wednesday that second-quarter 2009 sales fell 28.4 percent to $42.3 million from the same period last year. The company lost $3.02 million for the period ended June 27, compared with a loss of $68,000 during second-quarter 2008.
Through the first half of 2009, Stanley's sales of $82.9 million are down 32.5 percent from the same point last year; and a loss of $5.4 million compares with net income of $980,000 through 2008's first two quarters.
The decrease in operating income is primarily due to lower sales and production levels. A $7.2 million year-to-date operating loss increased in the second quarter compared with the first quarter primarily due to plant inefficiencies, higher selling discounts and increased factory overhead variances due to lower production levels.
In addition to its second-quarter financial report, Stanley also announced plans to consolidate its Lexington, N.C., warehouse operation into other company-owned warehouse space, primarily at the Robbinsville, N.C. facility. The transition is expected to be completed by the end of 2009 and is expected to improve annual operating income by approximately $1.3 million starting in 2010.
Stanley expects to receive between $6 million and $7 million in the fourth quarter of 2009 from Continued Dumping and Subsidy Offset Act payments from the antidumping order covering wooden bedroom furniture imported from China into the U.S. market.
"Given the sequential improvement in sales in the second quarter compared to the first quarter of this year and a stable order rate for the past few months, we are seeing signs that sales levels may have reached a bottom," Said Stanley Furniture Chairman and CEO Albert L. Prillaman.
"However, we see no indication of any sustained upturn."
Through the first half of 2009, Stanley's sales of $82.9 million are down 32.5 percent from the same point last year; and a loss of $5.4 million compares with net income of $980,000 through 2008's first two quarters.
The decrease in operating income is primarily due to lower sales and production levels. A $7.2 million year-to-date operating loss increased in the second quarter compared with the first quarter primarily due to plant inefficiencies, higher selling discounts and increased factory overhead variances due to lower production levels.
In addition to its second-quarter financial report, Stanley also announced plans to consolidate its Lexington, N.C., warehouse operation into other company-owned warehouse space, primarily at the Robbinsville, N.C. facility. The transition is expected to be completed by the end of 2009 and is expected to improve annual operating income by approximately $1.3 million starting in 2010.
Stanley expects to receive between $6 million and $7 million in the fourth quarter of 2009 from Continued Dumping and Subsidy Offset Act payments from the antidumping order covering wooden bedroom furniture imported from China into the U.S. market.
"Given the sequential improvement in sales in the second quarter compared to the first quarter of this year and a stable order rate for the past few months, we are seeing signs that sales levels may have reached a bottom," Said Stanley Furniture Chairman and CEO Albert L. Prillaman.
"However, we see no indication of any sustained upturn."
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