15042 Wed, 08/13/2008 - 12:44pm
GONZALEZ, La.–Net income for Crown Crafts, the manufacturer of infants’ and children’s textiles, totaled $619,000 in the first quarter of its fiscal year, 37.2 percent down from the first quarter of last year.
The company’s bottom line suffered from what E. Randall Chestnut, chairman, president and chief executive officer, called an overabsorption of overhead totaling $475,000—which should reverse itself in the fiscal year’s remaining quarters. Also, the company incurred about $425,000 of acquisition-related amortization expense associated with its purchase of the Springs Global infant and toddler product line during the third quarter of fiscal 2008. Chestnut also said operating income, without giving effect to the change in overhead absorption, was $1.8 million in both this year’s and last year’s first quarters.
Net sales rose 28.6 percent to $19.8 million in the quarter. For all of fiscal year 2009, Crown Crafts said it expects net revenues to range between $90 million and $93 million, or from 20 percent to 24 percent ahead of fiscal 2008.