MONROE, MI- La-Z-Boy Inc. reported that it received more than $18 million in wood bedroom furniture antidumping income, increasing its fiscal 2012 profit to $88.9 million, more than five times the net income it posted in FY 2011.
La-Z-Boy, which posted net operating income of $49.6 million for the year ended April 28, also reported receiving a $22 milliion "income tax benefit."
La-Z-Boy received $16.3 million in income from the Continued Dumping and Subsidy Offset Act during the fourth quarter. The CDSOA was originally set in place by the International Trade Commission in December 2004 to collect duties on wooden bedroom furniture imported from China. It was extended for an additional five years in November 2010.
La-Z-Boy's sales of $1.232 billion for FY 2012 represented a 3.8% increase over FY 2011. The company noted that same-store written sales for its La-Z-Boy Furniture Galleries were up 9.4% for the year.
The upholstery segment's operating margin outperformed that of La-Z-Boy's casegoods segnment, 8.4% compared to 4.0% respectively.
Kurt Darrow, chairman, president and CEO of La-Z-Boy, said, "Our casegoods segment continues to face challenges given the higher ticket associated with bedroom and dining room groups. However, we were profitable for the year on a decline in volume, reflecting the variable cost structure of the business model. At this past furniture market, we introduced several new bedroom groups from American Drew that will be made at our Hudson, NC, facility, and they were all well received. Production of these groups will begin in August, which should deliver improved operating efficiencies for the plant."
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