Stanleytown, VA, July 18, 2006--Stanley Furniture reported second-quarter earnings that dropped 32 percent due to sluggish sales and projected continued declines for the rest of the year.
Net income fell to $3.9 million, or $0.32 per share, from $5.8 million, or $0.44 per share, in the year-earlier quarter. Sales slipped 7 percent to $77.5 million from $83.6 million a year ago.
On average, analysts surveyed by Thomson Financial forecast earnings of $0.31 per share on $76.4 million in sales.
"We are disappointed with the decline in sales; however, we believe this is a result of overall current industry conditions," commented Jeffrey R. Scheffer, chairman, president and chief executive.
He said he expects the weaker sales climate "to persist for a while."
For the third quarter, Stanley expects sales of $81 million to $83.5 million, down 3 percent to 5 percent year over year. The company forecast per-share profit in a range of $0.38 to $0.41, compared with $0.44 in the year-ago quarter. Analysts see third-quarter sales of $84.1 million and earnings of $0.42 per share.
Stanley sees sales of $323.5 million to $331 million for the full year, down 1 percent to 3 percent from 2005 results. Per-share profit should range from $1.52 to $1.61 versus 2005 profit of $1.77, the company said. Analysts project 2006 per-share earnings of $1.61 on sales of $327.7 million.
