Chromcraft Revington Reports 18.9 Percent Sales Decline

May 13, 2008  by in UnCategorized   

By Home Furnishings Business in Casual Dining on May 2008 Chromcraft Revington reported Tuesday that sales in its first quarter declined 18.9 percent to $27.5 million as it continues to restructure its operations. The West Lafayette, Ind.-based company posted an operating loss of $2.2 million after seeing a $2.0 million loss in the same period a year ago.

The company recorded inventory write-downs and asset impairment charges of $700,000 and additional restructuring costs of $700,000 for exit activities and employee termination benefits as it prepared to cease manufacturing at its Delphi, Ind., factory and move that work to overseas suppliers. The move, which shifts the Delphi facility to a distribution and warehouse operation, will reduce the company’s workforce by 150 people.

Chairman and CEO Ben Anderson-Ray said, “Conditions in the furniture industry continued to be very difficult in the first quarter, and we expect the second quarter and the balance of the year to remain challenging. However, we remain committed to our strategy of transitioning our business to one that is consumer and customer driven. ... We believe this transition will position our company for the future when economic conditions improve.”