“The industry-wide slowdown that began in late 2012 … does not appear to be over.”
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\n By Duncan Adams
\nIn 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.<\/p>\n
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.<\/p>\n
Both companies were founded in 1924. And both have faced profound challenges in recent years because of competition from low-priced imports.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
These results also include income from the tariffs program.<\/p>\n
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.<\/p>\n
“The industry-wide slowdown that began in late 2012 worsened during 2013 and does not appear to be over,” said Scheffer in a statement.<\/p>\n
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.<\/p>\n
Stanley Furniture employs 1,357 people in Henry County and Martinsville.<\/p>\n
On Tuesday, Stanley’s stock price closed at $20.66, down $1.08. The stock trades on the Nasdaq exchange as STLY.<\/p>\n","protected":false},"excerpt":{"rendered":"
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