STANLEYTOWN, VA – Stanley Furniture reported net sales of $73.2 million for its third quarter, a decrease of 3.6% from the same period a year ago. Through the first nine months of 2007, Stanley posted net sales of $216.0 million, down 8.8% from the first three quarters of 2006.
Operating income declined to $3.1 million in the third quarter compared to $5.0 million for the third quarter of 2006. Operating income for the first nine months of 2007 stand at $9.8 million, less than half of the $19.9 million in profit turned in the same period last year.
“Business conditions in the third quarter were about as anticipated,” said Jeffrey Scheffer, president and CEO of Stanley. “While we were disappointed with lower sales and earnings, we believe this is a result of the current industry-wide conditions. We do not foresee any improvement in the demand environment anytime soon and have lowered our expectations for the balance of 2007.”
In response to the industry-wide slowdown, Stanley recently announced plans to consolidate manufacturing operations by bringing its Martinsville,VA, production to Stanleytown and expanding the warehouse operations at the Martinsville facility.
Have something to say? Share your thoughts with us in the comments below.