Bush 2Q sales down 10.3%; net income plummets 81.3%
By Furniture Today Staff -- Furniture Today, August 11, 2003
Jamestown, N.Y. — Sales and earnings continue to slide for Bush Inds., parent of ready-to-assemble furniture and case goods producer Bush Furniture.
In the second quarter, sales declined 10.3% from $78.9 million in 2002 to $70.8 million. After a $488,000 net restructuring charge, net income was $101,000 compared with $541,000 in last year's second quarter.
For the first half, sales of $145.7 million were down 12.9% from $167.3 million in 2002. With a $10.8 million net charge for cost reductions, the company posted a net loss of $13 million for the six months, compared with a net loss of $764,000 for the same period last year.
"The North American furniture market continued to be soft through the second quarter, as order patterns from our retail partners remained cautious," said Paul Bush, chairman and chief executive officer. He added that Bush Furniture Europe generated stronger-than-anticipated sales due to expanded distribution.
The company also forecast softer-than-previously-anticipated sales for the third quarter, with some improvement in the fourth quarter.
This spring, Bush closed its plant in St. Paul, Va., and consolidated all RTA furniture production in Jamestown. The company's expanded line of Eric Morgan assembled case goods is produced in its Erie, Pa., factory.
| Bush Inds. | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are loses or declines. | |||
| Quarter ended 6/28 | 2003 | 2002 | Change |
| (a) Includes pretax restructuring charges of $725,000 in the 2003 quarter and $8.7 million in the 2003 six months. The 2003 six months also includes a $6.4 million income tax benefit. (b) Based on average shares outstanding of 13.8 million in the 2003 periods and 14.1 million in the 2002 periods. (c) Includes a $2.4 million extraordinary charge, the cumulative effect of an accounting change. | |||
| Sales | $70,831,000 | $78,929,000 | (10.3%) |
| Operating income | 2,766,000 | 2,792,000 | (0.9%) |
| Net income | (a)101,000 | 541,000 | (81.3%) |
| Earnings per share(b) | 0.01 | 0.04 | (75.0%) |
| 6 months ended 6/28 | 2003 | 2002 | Change |
| Sales | $145,693,000 | $167,261,000 | (12.9%) |
| Operating income | (7,091,000) | 6,355,000 | (211.6%) |
| Net income | (a)(13,035,000) | (c)(764,000) | — |
| Earnings per share (b) | (0.94) | (0.05) | — |
