SHERBROOKE, QUE – Furniture manufacturer Shermag Inc. reported results for the third quarter and nine months ended Dec. 28, 2007. Consolidated gross revenue for the third quarter was $25.2 million, which was 38% less than the prior year period. Net revenue was $23.3 million, down 39% from the same period a year ago. Net loss for the third quarter was $22.2 million, compared to a loss of $7.6 million during the prior year period.
The company said that nearly three quarters of this loss is due to restructuring costs related to the closure of four manufacturing facilities in December 2007.
For the first three quarters of the current fiscal year, the company’s consolidated gross revenue totaled $83.4 million, a 37% reduction from the $131.5 million earned during the prior year period. Net revenue was $78.1 million, a decline of 36% compared to net revenue in the same period last year. Net loss was $29.8 million, compared to a net loss of $13.1 million from the same period a year earlier. Read more.
In related news, independent members of the Board of Directors of Shermag Inc. received a letter from Clarke Inc. expressing an interest in privatizing the company. Clarke indicated the price it is willing to pay is below Shermag’s current trading price, and it intends to approach other major shareholders to invite them to participate in the privatization. Shermag’s board of directors has formed an independent committee to review the proposal and any other offer that might be submitted by any other party. Read more.
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