Stanley 2Q Sales, Earnings Down

July 18, 2006  by in UnCategorized   

By Home Furnishings Business in Case Goods on July 2006 Stanley Furniture Co. reported second-quarter 2006 sales of $77.5 million and net income of $3.9 million, respective decreases of 7.4 percent and 32.4 percent, compared to the same prior-year period.

Year to date, sales of $161 million are off 3.4 percent from the first half of 2005; and net income of $9.3 is down 19.5 percent.

“We are disappointed with the decline in sales; however we believe this is a result of overall current industry conditions,” said Jeff Scheffer, chairman, president and chief executive officer. “Quite frankly, we expect this weaker sales environment to persist for a while, and as a result we have lowered our sales and earnings guidance for the balance of the year.”

Scheffer was pleased, however, with strong cash flow and ongoing improvements in manufacturing efficiency.

“These efforts have already resulted in a significant decrease in inventories while improving customer service levels, and we believe we are laying the ground work to further improve processes and efficiencies,” he said.

In the third quarter, Stanley’s management expects sales between $81 million and $83.5 million, a decrease of 2.5 percent to 5.4 percent compared to the prior year.

For 2006, the company anticipates sales between $323.5 million and $331 million, a decrease of 1 percent to 3 percent from 2005 levels.