Flexsteel 4th Quarter Sales Up, But Some Segments Slipping

August 22, 2007  by in UnCategorized   

By Home Furnishings Business in Leather Upholstery on August 2007 Flexsteel Industries, Dubuque, Iowa, reported Wednesday that sales in its fourth quarter rose 2 percent to $114.3 million, and the upholstery maker’s net income was $5.8 million. Despite the sales increase, company officials said it expects to continue to contend with softness in its residential and vehicle markets through the first half of its 2008 fiscal year.

The company also said net income in its fourth quarter was aided by a property sale and other one-time gains. Without those items, net income for the quarter that ended June 30 was $2.8 million, compared to $1.5 million in the same period a year ago.

For the fiscal year, sales totaled $425.4 million, which was within $1 million of its total for the previous year. Residential and vehicle sales both declined, but commercial net sales increased 15 percent. However, in discussing its outlook, company officials said commercial orders slowed in the fourth quarter, and the company expects that trend to continue.

As a result, officials stated, “The company continues to explore cost control opportunities in all facets of its business. The company believes it has the necessary inventories and product offerings in place to take advantage of opportunities for expansion of market share in certain markets, such as commercial office and hospitality.”