STANLEYTOWN, VA – Stanley Furniture Co. Inc. reported sales and earnings for the second quarter of 2008. Net sales were $59.1 million, down 12.7% from the second quarter of 2007.
Net sales for the first half of 2008 were $121.7 million, which is 14.8% less than the prior year period. Year-to-date operating income declined to $3.4 million, or 2.8% of net sales, excluding restructuring charges of $0.3 million, while operating income for the first half of 2007 was $6.6 million, or 4.6% of net sales, excluding the pension termination charge of $6.6 million.
According to the company, the decrease in operating income and margin was the result of lower sales and production levels, higher raw material cost and other inflationary cost increases.
“Historically low levels of consumer confidence, housing activity and personal disposable income has led to an industry-wide weakness in consumer demand for residential furniture not seen since the early ‘80s,” said Jeffrey R. SCheffer, president and CEO. “We are making difficult moves from top to bottom and throughout our business to remain profitable at lower sales volumes and to be well-positioned for continued success when demand eventually improves.”
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