FBI profits rise despite 14.3% sales decline
By Larry Thomas -- Furniture Today, May 5, 2008
St. 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 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 totaled $477.2 million, and 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 compared with $2.9 million a year earlier. Discontinued operations primarily include contract unit Hickory Business Furniture, which was sold earlier this year.
During a conference call with securities analysts, Scozzafava declined to give sales and earnings figures for business units, but said all of them were profitable during the quarter. The company's brands include Lane, Broyhill, Thomasville, Drexel Heritage, Henredon and Maitland-Smith.
Scozzafava also reaffirmed 2008 sales and earnings guidance, noting that sales should be $1.9 billion to $2 billion and earnings 40 cents to 60 cents per share.
The restructuring plan should result in annual savings of $40 million to $50 million, he told analysts.
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.
| Furniture Brands International | |||
|---|---|---|---|
| Owns Broyhill, Drexel Heritage, Henredon, Lane, Maitland-Smith and Thomasville | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 3/31 | 2008 | 2007 | Change |
| (a) Includes net earnings from discontinued operations of $29.9 million in the 2008 quarter and $1.6 million in the 2007 quarter. | |||
| Sales | $477,200,000 | $556,959,000 | (14.3%) |
| Operating income | 9,038,000 | 6,845,000 | 32.0% |
| Net income (a) | 33,616,000 | 2,877,000 | 1068.4% |
| Earnings per share | 0.69 | 0.06 | 1050.0% |
