Furniture Brands Predicts FY08 Loss

ST. LOUIS, MO – Furniture Brands Intl Inc. said it now expects to report a GAAP net loss for fiscal 2008, due to lower sales volume, pre-tax charges and unusually weak economic conditions, according to RTTNews.com. The company also announced a number of steps to reduce ongoing costs and improve efficiencies.

For fiscal 2008, Furniture Brands now expects a GAAP net loss from continuing operations of $0.49 to $0.55 per share. Earlier earnings expectations were in the range of $0.40 to $0.60 per share.

Net sales outlook was lowered to a range of $1.75 billion to $1.80 billion from its prior estimate of $1.9 billion to $2.0 billion.

Furniture Brands said it plans to implement several initiatives to cut ongoing costs and improve operating efficiency. Initiatives include expanding low-cost, company-owned manufacturing capacity in Asia, consolidating and leveraging domestic manufacturing assets and expediting the exit from unprofitable retail locations.

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