13826 Wed, 02/20/2008 - 12:53pm
MONROE, Mich.–La-Z-Boy this morning reported profits of $9.5 million for the third quarter ended Jan. 26, up from a loss of $7.8 million during the same period last year.
For investors, this meant a net gain of 18 cents per diluted share, compared with a loss of 15 cents in the year-ago period.
These results were based on net sales of $373 million for the quarter, down 7.8 percent over the year.
The per-share profit included income related to “anti-dumping duties received on bedroom furniture imported from China,” the furniture company said in a statement.
Sales in all three of the firm’s units fell during the quarter. Upholstery sales were down 3.8 percent; case goods sales dropped 16.6 percent; and retail sales were down 18.4 percent.
In spite of the increase in income, Kurt L. Darrow, president and chief executive officer, said the company still faces “a difficult macroeconomic period, which is impacting the housing and home furnishings markets.” He emphasized the company’s cost-reduction efforts for both the wholesale and retail operations.
He also mentioned the firm’s new secured credit agreement, an “asset-based lending facility secured by inventories and trade receivables.” Under the agreement, the revolving line of credit available to the firm was $63.9 million as of Feb. 18.