Interior furnishings supplier Decorator Industries Inc. reported a net loss for its second quarter, ended June 28, impacted by a 36% decrease in RV revenue.
The Pembroke Pines, Fla.-based firm, which also services the hospitality and manufactured housing sectors, said the net loss for the second quarter totaled $1 million compared with net income of $64,000 a year ago. Sales during the three-month period dipped to $12.5 million from $12.7 million and RV revenue fell to $4.5 million compared to $7 million the year prior.
For the six months, Decorator reported a net loss of $1.5 million versus a net loss of $28,000 in the year-ago period while sales declined 7% to $23 million from $24.9 million.
The company said the net loss in the second quarter and six months included a one time pre-tax charge of $1.4 million related to the scheduled closing of certain facilities and the impairment of assets.
“Our efforts to grow our sales in the hospitality industry have begun to produce results,” said President and CEO William Johnson. “Unfortunately this is being offset by the continued deterioration of the MH and RV industries due to high fuel prices, the credit crisis and low consumer confidence.”
“We have begun a process of closing underperforming facilities in an effort to return the company to profitability. The buildings associated with these operations have been placed on the market for sale. This will be an ongoing process through the remainder of 2008 and we will continue to reevaluate our plan and make alterations as changes in our business environment dictate.”