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Headline News
Furniture Brands Cuts Net Loss to $23.5 Million
ST. LOUIS–Furniture Brands International reduced its third-quarter net loss from $41.7 million in 2008 to $23.5 million this year.
Ralph Scozzafava, chairman and chief executive officer, said Furniture Brands’ efforts to slim its costs helped offset a 29 percent decline in third-quarter sales, which totaled $293.7 million. The company’s “cost discipline”—which encompassed greater efficiency in manufacturing, reductions in the work force and the consolidation of its supply-chain organization—helped boost its gross margin during the third quarter, Scozzafava said. In particular, Furniture Brands’ selling, general and administrative expenses were slashed by 31 percent in the quarter.
Scozzafava also said the company’s efforts to increase revenue have been hurt by the weakness in consumer spending. However, “these programs are building traction and, in a more stable marketplace, will help produce the operating leverage that has always been a key focus of our strategic plan,” he said.