Chromcraft Q2 Sales off 1.3%

August 16, 2011  by in UnCategorized   

By Home Furnishings Business in Financial Reports on August 17, 2011

Full-line furniture vendor Chromcraft Revington (AMEX: CRC) reported second-quarter 2011 sales of $13.8, a 1.3 percent slip from the prior-year quarter.

Chromcraft, West Lafayette, Ind., recorded a loss in the quarter ended July 2 of $1.25 million, trimming 6.6 percent off the $1.3 million lost in second-quarter 2010.

Second-quarter 2011 sales were up 11 percent from the first quarter, and Chromcraft's second-quarter loss was reduced 30 percent from the prior quarter.

The company credited improved second quarter operating results compared with the first quarter of 2011 and the second quarter of 2010 primarily to an increase in commercial furniture shipments, reflecting improved conditions in the U.S. office furniture market.

Residential furniture shipments in the second quarter of 2011 were slightly lower as compared to the prior year period primarily due to weak consumer demand for residential furniture in our product categories and price segment due to the continuing economic downturn which reflects the ongoing labor and housing market struggles and high consumer debt levels; and import competition.

"Despite our operating loss for the second quarter, we are encouraged by a marked improvement over the first quarter 2011 operating results in both sales and operating loss, primarily due to a pickup in our recent order activity and shipments of contract commercial products," said Ronald Butler, chairman and CEO. "Although the ongoing difficult operating environment in the residential furniture market will continue to be challenging, we expect the positive impact on our business resulting from what may be the start of a rebound in the U.S. office furniture market to continue through the remainder of the year. In these uncertain economic times, we have diligently focused on our cash flow and balance sheet management along with controlling operating costs to be in line with our revenue base."

Chromcraft Revington's residential brands include Chromcraft, Cochrane, Peters-Revington, Southern Living, and CR Kids & Beyond. It sells commercial furniture under the Chromcraft brand.