Stanley Revises Earnings, Sales Guidance

September 13, 2006  by in UnCategorized   

By Home Furnishings Business in Case Goods on September 2006 Case goods major Stanley Furniture Co. announced Wednesday that it expects a third-quarter sales decline of between 8 percent and 10 percent compared to the same period in 2005, when it had record shipments of $85.6 million.

“Third-quarter sales to date have been weaker than previously anticipated, and we believe this is a result of overall industry conditions,“ said Jeff Scheffer, chairman, president and chief executive officer, in a release announcing the new forecast. “We have not seen any significant change in order trends since Labor Day, and we are projecting these business conditions to persist for the remainder of 2006 in our revised guidance.”

Stanley now anticipates third-quarter 2006 diluted earnings per share of between $0.27 and $0.29, down from a prior guidance of $0.38 to $0.41. The company earned $0.44 per share in the third quarter of 2005.

For the entire year 2006, sales are now expected to decline 4 percent to 7 percent from 2005 levels, and diluted earnings per share are now expected to be $1.24 to $1.32, compared to $1.77 for 2005. This guidance excludes any potential receipt of funds from tariffs collected by the U.S. government on wooden bedroom furniture imported from China.

Stanley plans to announce third-quarter operating results Oct. 16.