Flexsteel, sales up, reports $1.6 M shutdown costDUBUQUE, IA--

Furniture maker Flexsteel Industries saw a 4 percent sales rise to $339.4 million for the year ended June 30, but sales for the fourth quarter fell 1.6 percent to $85.6 million.

Flexsteel also reported $1.6 million in charges related to shutdowns and layoffs.

Residential furniture sales rose 4.9 percent, to $258.1 million compared to $246 million for the year. Commercial  sales were $81.3 million, up1.1 percent

Net income for the year fell by $400,000 to $10.4 million, reflecting  pre-tax charges of $1 million in employee separation charges for closing a manufacturing facility and an inventory write-down of $0.6 million. Fourth quarter net income fell by $700,000 to $3.5 million. Residential sales fell 2 percent during the period; commercial net sales were flat.

Flexsteel says its modest gains this year are partially due to a strong backlog entering the year. The company anticipates that first quarter fiscal year 2012 sales will be lower, mainly due to the uncertain economic climate.

"We anticipate increased orders for hospitality products during fiscal year 2012 resulting from pent up demand caused by delays in typical refurbishing cycles for hotel properties," Flexsteel said.

Posted by Michaelle Bradford

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