16984 Wed, 09/16/2009 - 1:09pm
STANLEYTOWN, Va.–Stanley Furniture Company announced yesterday that it expects operating results for the third quarter of 2009 to be worse than the second quarter of 2009.
Third quarter 2009 sales are expected to be less than the second quarter of 2009, and the company expects its operating loss to increase in the third quarter of 2009 from the second quarter 2009 operating loss.
The anticipated higher operating loss stems from the disruption caused by the transition of approximately one-third of the Company’s Young America products from off-shore sourcing to its own domestic manufacturing facilities, lower sales, and an estimated $900,000 of accelerated depreciation due to a previously announced warehouse consolidation.
“The decision to bring all Young America production back to our own domestic facilities was necessary to regain control of the entire production process so we can reposition Young America as the trusted children’s furniture brand for safety, broad selection, quick delivery and environmental commitment,” said Glenn Prillaman, president and chief operating officer. “While near term this move will be disruptive to our operating results, we expect the long term impact to be very beneficial as we clearly distinguish our Young America product line from competition in the marketplace. This does not impact our blended strategy of combining domestic manufacturing with global sourcing for adult product lines.”
Stanley Furniture expects to release its third quarter 2009 financial results after the market closes on Oct. 14.