Flexsteel Reports Sales Decline, Loss

October 20, 2008  by in UnCategorized   

By Home Furnishings Business in Motion Upholstery on October 2008 Stung by a dramatic drop in sales in its recreation vehicle seating unit, Dubuque, Iowa-based Flexsteel announced Monday that sales in its first quarter were down 9.4 percent to $91.4 million, leading to a loss of $749,000 versus net income of $1.2 million in the same period a year ago.

Residential net sales were down by about $700,000 to $62 million slightly, but the company’s recreational vehicle seating unit saw sales drop 62.1 percent to $5.9 million. Commercial sales increased 4.3 percent to $23.5 million.

The company said it is working to bring production in line with current demand and has cut its workforce by about 15 percent this year through layoffs and attrition. The company announced in September that it is closing two long-established manufacturing operations, including a 50-year-old factory in Lancaster, Pa., and a 25-year-old facility in New Paris, Ind., that specialized in recreational vehicle seating.