“The industry-wide slowdown that began in late 2012 … does not appear to be over.”


By Duncan Adams
In mid-December, Stanley Furniture announced plans to lay off 200 of 450 workers at one of the Virginia-based manufacturer’s two plants in North Carolina.

In mid-January, crosstown competitor Hooker Furniture of Martinsville said it will close its last wood furniture plant in March. That shutdown will cost another 280 furniture workers their jobs.

Both companies were founded in 1924. And both have faced profound challenges in recent years because of competition from low-priced imports.

On Monday, Stanley Furniture reported drops in sales and earnings, both for the company’s fourth quarter and for 2013. But the company still reported profit of $4.5 million for its fourth quarter and $16.8 million for 2013.

Income for both periods was enhanced by the receipt of $4.4 million from tariffs collected on imported wood furniture from China, funds related to a case that proved some Chinese manufacturers were dumping furniture in U.S. markets at unfair prices.

For its fourth quarter, when compared to 2012, Stanley’s sales declined 13 percent to $70.6 million, or 40 cents a share. For the full year, sales of $307.5 million declined 7.8 percent and earnings per share decreased 20 percent to $1.41.

These results also include income from the tariffs program.

Jeffrey Scheffer, president and chief executive officer, said the company is disappointed with lower sales and earnings and added that he sees no clear evidence of imminent improvement.

“The industry-wide slowdown that began in late 2012 worsened during 2013 and does not appear to be over,” said Scheffer in a statement.

He said Stanley will work to control costs and inventories and improve product offerings. And he predicted first quarter sales for 2014 will drop from a record $83.5 million in the same period last year.

Stanley Furniture employs 1,357 people in Henry County and Martinsville.

On Tuesday, Stanley’s stock price closed at $20.66, down $1.08. The stock trades on the Nasdaq exchange as STLY.