ST. LOUIS, MO-- Furniture Brands International (NYSE:FBN) third quarter sales fell to $258 million, down 5.1 percent from the 2010 third quarter period. The residential furniture maker psoted a net loss of $24.5 million, versus $2.1 million in Q3 2010.
The furniture maker says cost reduction actions it has implemented, for which Furniture Brands took a $7.5 million charge in the quarter, will yield annualized cost savings of more than $30 million.
"We operate in a discretionary category and the macro headwinds have had an impact on our operating environment, affecting the buying behavior of our target customers," says Ralph Scozzafava, CEO. "Our focus has been . . .on controlling our controllables. We cannot, and will not, simply wait for an economic recovery."
Scozzafava says ongoing implementation of SAP and the addition of low-cost plants in Indonesia and Mexico will better position it for the future.
In a hopeful note, Furniture Brands says third-quarter 2011 same-store sales at the 45 Thomasville stores it has owned and operated for more than 15 months rose 5 percent, marking seven months of increasing sales. In 2010 same store sales increased 22 percent. Furniture Brands produces under a number of other labels, including Broyhill, Lane, Drexel Heritage, Henredon, Hickory Chair, Pearson, Laneventure, Maitland-Smith, and Creative Interiors.
The results don't include two transactions completed after the quarter ended: Furniture Brands closed the sale of its Morganton plant, yielding $5.9 million; and made a final 2011 pension contribution of $2.5 million.
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