St. Louis, MO, September 7, 2006--Furniture Brands International Inc,. trimmed its third-quarter earnings forecast, in a further sign that higher interest rates and cooling home sales are leading some consumers to pull back from big-ticket purchases.
The maker of Thomasville, Broyhill, Henredon and other brands expects earnings of 9 cents to 13 cents a share, including charges and other items, as sales growth is "slightly positive."
In July, the company had forecast profit of 18 cents to 22 cents a share, saying sales would rise in the low-single digits.
Furniture Brands said it was making more aggressive discounts on slower-moving products and had scheduled downtime in several upholstery plants.
"Business conditions have softened," Chairman W.G. Holliman said in a statement.
Last week, furniture maker and retailer Ethan Allen Interiors Inc. said sales, which had began slowing in July, pulled back further in August.
On Wednesday, Ethan Allen said it would halt production at two U.S. plants to improve its overall manufacturing and distribution, affecting 465 workers.
