Rendering of Flexsteel Industries' new headquarters.
- Flexsteel Industries, manufacturer of upholstered and wood furniture for residential, recreational vehicle, office, hospitality and healthcare markets, says third quarter sales rose 4.6 percent to $85.2 million, while net income improved 5.8 percent to $2.5 million.
The gain in net income comes despite a rise in materials costs, says Flexsteel, which reports "increases in the cost of certain raw materials, such as steel, polyester fiber, fabric and leather, and finished products." Flexsteel says it is passing along costs to customers, but it projects "downward pressure on gross margin until we realize the full benefits of these sell price increases.
For the nine months ended March 31, Flexsteel says net sales rose 5.9 percent to $255.2 million compared to the prior year sales of $240.9 million, an increase of 5.9%. The Company reported net income of $6.9 million for the period, including $1 million in pre-tax charges related to closing a manufacturing facility for employee separation and other closing costs, and an inventory write-down to cost of goods sold of $600,000.
Flexsteel Industries announced plans at the end of March to construct a $12 million, four-story, 40,000-square-foot global corporate building in Port of Dubuque, IA.
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