FBI 4Q Sales Off 29.2%

February 4, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on February 5, 2010

St. Louis-based Furniture Brands International (NYSE:FBN) reported on Wednesday fourth-quarter 2009 sales of $285.6 million, a 29.2 percent decline from fourth-quarter 2008.

Net sales from continuing operations for the fiscal year ended Dec. 31 were $1.2 billion, compared with $1.7 billion for fiscal 2008, a decline of 29.8 percent.

FBI lost $65 million in fourth-quarter 2009. For all 2009, FBI lost $108.7 million, compared with a loss of $385.9 million in fiscal 2008.

"Furniture Brands' financial results for 2009 show the effect of the recession on consumer spending," said Chairman of the Board and Chief Executive Officer Ralph P. Scozzafava. "The company's results also reflect decisions to right-size the company and reduce our cost basis. These actions are good for our business in the long term and also provided an opportunity for the company to capitalize on the tax refund created by recent federal tax legislation. With our strong cash flow management, Furniture Brands' balance sheet is solid and the pending tax refund will further improve our financial position. The company's balance sheet is on track to have cash exceed debt with the receipt of the tax refund later this year.

"With regard to top-line sales, our order trends appear to be stabilizing and the company's upholstery business is tracking with industry patterns, especially in the medium price points. Sales in our higher end brands continue to reflect a cautious attitude on the part of the luxury consumer. Furniture Brands is working hard to drive consumer demand with the development of exciting, new consumer-tested products, enhanced brand marketing to consumers, and innovative programs for our dealers. We have the best portfolio of brands in the industry, and we believe that people want to buy quality products from brands they know and trust."