Interior furnishings supplier Decorator Industries Inc. reports its third-quarter net income increased 22% as the Pembroke Pines, Fla. firm outperformed both the RV and manufactured-housing industries, the sectors that comprise the majority of its customer base.
Decorator, an American Stock Exchange-listed firm, earned $419,000 in the three months ended Sept. 27, compared with $344,000 in the same portion of 2002.
The company’s total sales increased 10% in the period to $10.98 million, compared with $9.97 million a year earlier.
For the first nine months of this year, Decorator’s net earnings increased 6% to $1.22 million, compared with $1.16 million a year earlier. Its total sales improved 8% in the first nine months of the year to $31.53 million, compared with $29.25 million for the same period last year.
“While our third-quarter sales to MH (manufactured housing) customers declined 16%, which is less than the MH industry decline of 20%, we increased our sales to RV customers by over 25% from the year earlier, considerably better than the flat performance reported by the RV industry,” said William Bassett, Decorator’s chairman.
“The increase in RV sales, along with a strong operating performance more than offset the decline in MH sales, enabling us to achieve significantly improved results compared with a year ago,” he added.
Although Bassett characterized the RV wholesale market as being flat, he agrees with Recreation Vehicle Industry Association forecasts that RV shipments in 2003 will be the third highest in 25 years and he believes RV shipments will increase in 2004.
Concerning the manufactured-housing industry, Bassett said “financing for both dealers and home buyers is more restrictive,” but he added, “It is available for those who are qualified.”
There are analysts who believe manufactured-home shipments will improve in 2004, which would mark that industry’s first improvement since 1998, Bassett said.
Decorator, a 50-year-old company, makes and sells draperies, curtains, shades, blinds, valance boards, bedspreads, comforters, pillows, cushions and trailer tents.