Chromcraft Revington Posts $10.1 Million Loss

November 10, 2008  by in UnCategorized   

By Home Furnishings Business in Casual Dining on November 2008 Citing factors ranging from a weak economy to unsuccessful product introductions, Chromcraft Revington, West Lafayette, Ind., announced Monday that sales in its third quarter dropped 18.8 percent to $23.07 million, and the company incurred a loss of $10.1 million after a loss of $2 million in the same period a year earlier.

The one bright spot was that the company’s commercial furniture sales unit increased sales by an unspecified amount. The report comes after the company began the third quarter by replacing its CEO and reorganizing its senior management. The company reported impairment expenses of $6.6 million, some of which is related to the closing of its Delphi, Ind., factory, which has been converted to a distribution facility. The company announced in September it plans to lay off 185 employees in Lincolnton, N.C., by the end of November and sell its buildings and equipment there as it outsources manufacturing that had been conducted at that location and in Indiana.

Chairman and CEO Ronald Butler said the restructuring is necessary to position the company to compete more effectively in a global furniture marketplace, and he said the company is responding to weak sales with spending controls and overhead spending reductions, including personnel cuts.

He said the company has several sources of cash, including unused borrowing capacity of $14.2 million, and it expects to receive $3.3 million in 2009 from the sale of buildings and equipment in North Carolina. It also anticipates refundable income taxes of $3.4 million and would gain $3 million from the sale of excess inventory.

For the first nine months of Chromcraft Revington’s year, sales declined 19.9 percent to $76.1 million, and its net loss for the nine-month period was $18.4 million following a loss of $6.5 million a year earlier.