Chromcraft Revington Sales Down 19% in Second Quarter

August 13, 2007  by in UnCategorized   

By Home Furnishings Business in on August 2007 Chromcraft Revington Inc., West Lafayette, Ind., reported second-quarter 2007 sales of $32.8 million, a 19 percent drop from the same period last year. Year-to-date sales of $66.6 million are 23 percent below the first six months of 2006.

For 2007’s second quarter, ended June 30, Chromcraft Revington had a loss of $3.3 million, compared to income of $700,000 in the prior-year period. Through six months this year, the company has lost $4.5 million, compared to earnings of $1.8 million during the first half of 2006.

While commercial furniture shipments were up, residential shipments through the first half were lower due to an industry-wide slow down at the retail level, competitive pressure from imports and the impact of restructuring the company’s residential sales force to exclusive sales representation of its furniture brands. Consolidated shipments in the second quarter of 2007 included $3.3 million of backlog reduction.

Chromcraft Revington attributed the second-quarter net loss primarily to the lower sales volume, which impacted fixed cost absorption and manufacturing efficiencies, non-cash charges for inventory write-downs and asset impairments, an unfavorable product sales mix and higher product development, marketing and selling costs.

“Over the last several months we have made significant progress in transforming our business model,” said Chairman and CEO Ben Anderson-Ray. We continue to shift the business toward use of the global supply chain by outsourcing products and reducing reliance on U.S.-based manufacturing. Simultaneously, we are moving our organization from autonomous operating divisions to a unified organization.”

Chromcraft Revington wholesales its residential furniture products under the CR Home banner with Chromcraft, Peters-Revington, Silver Furniture, Cochrane Furniture and Sumter brand names. It sells commercial furniture under the Chromcraft brand name.