ST. LOUIS - Furniture Brands International (FBI), notified last month that its stock had fallen below the New York Stock Exchange's (NYSE) listing standard, recorded a $40.8 million loss for the second quarter ended June 29.
The furniture manufacturer and importer announced that it was "implementing strategic initiatives to achieve cost reductions, pursuing asset sales and working with its lenders to potentially modify its credit facilities" in a concerted effort to improve its liquidiy and standing with the NYSE.
The initial market reaction to FBI's Q2 announcement was a one-third drop in stock prices to $1.37 per share.
FBI said the majority of its Q2 loss related to $26.9 million asset impairment charges, including $15.7 million for impairment of software assets and $10.8 million for trade name impairments.
FBI posted Q2 sales of $255.0 million, down 4% from the same period last year. The company's brands include Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Hickory Chair, Pearson, Lane Venture, Maitland Smith and LaBarge.
Ralph Scozzafava, FBI chairman and CEO, said, "Our financial performance in the second quarter was below our expectations. Continued solid top and bottom line performance of our designer brands and improving sales and order trends at our Thomasville owned retail stores were once again significantly over-shadowed by the challenges we are facing in stabilizing sales and profitability in our wholesale businesses."
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