La-Z-Boy Fiscal Cliff Cash Strategy

By Bill Esler | Posted: 12/06/2012 6:00PM


  Bill Esler woodworkingnetwork.comBill Esler La-Z-Boy furniture sales are benefiting from the improved econom. But cell-based manufacturing - replacing long, labor intensive wood products production lines with assembly stations, often with machining centers.

The investment La-Z-Boy has made in reorganizing production has a payoff. But like many businesses in the wood and other industries, the uncertainty of tax policy and the fiscal cliff is affecting strategy.

La-Z-Boy resinstated its dividend for the first time since 2008 but is also hanging on to cash, says CEO Kurt Darrow, because of the uncertainty about how investment and income will be treated under whatever the tax policy debate in Washington yields.

"We want to keep our financial flexibility," Darrow said during an earning presentation. "We want to keep a little more cash on hand than some of our shareholers would appreciate."



About the Author

Bill Esler, Woodworking Network, WMS

Bill Esler

Bill Esler, Editorial Director, Woodworking Network Bill is responsible for overall content at Woodworking Network magazine, and related newsletters. Bill also manages event programs for Woodworking Network Live conferences at the Woodworking Machinery & Supplies Expo in Toronto and Cabinets & Closets Expo. He developing audience engagement programs using custom digital printing, live lead-generating events, custom websites, and custom digital and print content. Read Bill Esler's woodworking blogs. He can be reached at or follow him on Google+.

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