Flexsteel Reports 25% Sales Decline, Loss in 3Q
Flexsteel Industries Inc. reported Tuesday (April 21) net sales for the quarter ended March 31 of $73.6 million compared to the prior year quarter of $98.1 million, a decrease of 25.0%.
The Dubuque, Iowa-based RV furniture manufacturer also reported a net loss for the quarter of $1.9 million compared to net income of $800,000 in the prior year quarter.
Net sales for the nine months ended March 31 were $249.6 million compared to $305.0 million in the prior year nine-month period, a decrease of 18.2%. The company reported a net loss for the current nine-month period of $2.3 million compared to net income of $3.9 million in the prior year period.
During the the first three quarters of the current fiscal year, the company recorded pre-tax charges of approximately $2.4 million related to facility consolidation and employee separation costs and a $1.7 million inventory write-down.
For the quarter ended March 31 net sales to the RV industry were $2.5 million compared to $14.0 million in the prior year quarter, a decrease of 82%. Net sales to the RV industry were $13.4 million for the nine months ended March 31, a decrease of 70% from net sales of $44.5 million for the year-earlier period.
The consolidation of manufacturing operations that the company announced on Sept. 10 was substantially completed as of Dec. 31. However, workforce reductions have taken place at other facilities as the company continues to adjust operations to bring production capacity in line with current and expected demand for its products. Companywide employment has been reduced approximately 30% over the past year.
“Demand for our products is dependent on factors such as consumer confidence, affordable housing, reasonably attainable financing and an economy with low levels of unemployment and high levels of disposable income,” the company stated in its release. “These factors are all currently in poor positions, and indications are that they will remain that way in the near-term. We are not anticipating significant improvements in market conditions at this time, and are managing our business on that basis.”
“While we expect that current business conditions will persist for the remainder of calendar year 2009, we remain optimistic that our strategy of a wide range of quality product offerings and price points to the residential, recreational vehicle and commercial markets combined with our conservative approach to business will be rewarded over the longer-term,” the company concluded.