WEST LAFAYETTE, IN - Chromcraft Revington Inc. reported sales gains of 3.4% for the third quarter of 2012. This extends the term of positive quarterly increases over the prior year for the manufacturer and importer of commercial and residential furniture.
Sales for the quarter were $13,673,000, up 3.4% compared to the same period last year. Sales for the nine months ended Sept. 29 were $41,729,000 or 5.6% higher than the first nine months of 2011.
Chromcraft attributed much of the increase in sales for the third quarter to increased shipments of its commercial furniture segment, specifically office suites and waiting area furniture resulting from its acquisition of EOC. The company reports residential shipments for the third quarter were comparable to 2011, resulting from an increase in sales of home entertainment furniture offset by lower sales of dining room furniture.
However, the company reported, residential furniture sales decreased in the third quarter of 2012 compared to the second quarter of 2012, primarily due to lower sales of dining room furniture.
Chromcraft Chairman and CEO Ronald H. Butler said in a statement, “Despite the continuing low consumer confidence in the economy and the very difficult retail operating environment, we increased sales in the third quarter of 2012 as compared to the prior year period, largely due to increased sales of our commercial furniture products to the health care industry, primarily through our purchase of EOC.
"The ongoing difficult operating environment in the residential furniture market will continue to be challenging into the first quarter of 2013. We believe the recent signs of marginal improvement in the housing market are tempered by the uncertainty over the outcome of the upcoming federal 'fiscal cliff' at the end of 2012 and its impact on consumer spending."
Butler added, "Our acquisition of California-based EOC, with its commercial product lines, especially an extensive health care line, complement our current product line of seating, tables, and waiting area furniture. In addition, the three year contract we were awarded late in 2011 with the Premier healthcare alliance is expected to boost our sales in this product line. The health care sector continues to grow significantly and we believe this alliance continues to position the commercial line of our Chromcraft division favorably for the future.”
Have something to say? Share your thoughts with us in the comments below.