Stanley Furniture 3Q Earnings Up, Miss Expectation
Stanleytown, VA, October 18, 2005--Stanley Furniture in its third-quarter reported earnings of $5.8 million, or $0.44 per share, in the quarter, up from $5.3 million, or $0.40 per share, a year earlier. Sales were up grew 9 percent to $85.6 million from $78.8 million.
The company missed analysts forecasts of $0.47 per share on sales of $85.7 million.
The company also lowered its fourth-quarter outlook, citing production cuts. Its shares were halted in recent after-hours trading.
"We believe industry sales growth slowed during the third quarter and is in an uncertain period due to a sharp decline in consumer confidence levels," Chairman, President and Chief Executive Jeffrey r. Scheffer said in a statement. Stanley also noted that it suffered from inefficient operations and lower production levels.
In addition, to the lower-than-expected sales growth, bottom-line profit was hurt by higher costs for raw materials, compensation, energy, freight, warehouses and tariffs on imports from China, the company said. Stanley noted that its results were within its guidance -- though at the lowest end of its forecast for earnings of $0.44 to $0.47 per share.
Looking ahead, Stanley said it is "hopeful that this will prove to be a short-term disruption in demand," but predicted lower fourth-quarter production than a year ago and lowered its outlook for the period. The company predicted profit of 39 cents to 42 cents per share, below year-earlier earnings of 43 cents per share. The company forecast sales of $81.5 million to $84.5 million for the period.
For the year, Stanley expects earnings of $1.70 to $1.73 per share, up from $1.59 in 2004, and sales of $334 million to $337 million. Previously, Stanley had forecast profit of $1.78 to $1.85 per share on sales of $334 million to $340 million.
