Furniture Brands' sales, profits drop in Q3 |
Furniture Brands International said Wednesday there were no surprises as it saw its third quarter sales drop 9 percent and the company posted a loss of $13.7 million. W. G. "Mickey" Holliman, chairman and chief executive officer, said in a statement: "Our financial results for the third quarter were as expected, as the home furnishings industry continues to show the effects of cautious consumer spending." For the third quarter ended Sept. 30, sales dropped more than 9 percent from $568.9 million during last year's third quarter to this year's revenue of $516.3 million during the same period. Furniture Brands reported a loss of $13.7 million, or $0.28 loss per share, a $19.4 million difference from last year's third quarter when the company had profits of $5.8 million, or $0.12 earnings per share. Last week, the company unveiled a new strategic plan with the intention to move to a more focused company serving the mid- and high-end markets for residential furnishings. The company previously announced Oct. 15 that it will sell its commercial furniture operation, Hickory, N.C.-based HBF, to focus solely on residential furnishings. At a recent company investor event, Furniture Brands revealed it adopted a new earnings guidance policy and will provide it only on an annual basis. The company anticipates providing 2008 earnings guidance in late January. St. Louis-based Furniture Brands International Inc. (NYSE: FBN) manufactures furniture under the Thomasville, Henredon, Drexel Heritage, Maitland-Smith, Broyhill and Lane brands. computerworld.com |