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Seating supplier Flexsteel Industries Inc. reported its net earnings during the three months ended Dec. 31 declined 59% largely due to one-time-only costs related to the closure of its factory in Elkhart, Ind., late last year.

Flexsteel earned $711,000 during the three months ended Dec. 31, the second quarter of its fiscal year 2002, compared with $1.7 million earned a year earlier.

The Dubuque, Iowa-based company took a $900,000 change against its second quarter cost of goods sold to account for the Elkhart plant closure.

Flexsteel moved Elkhart plant production to its factory in nearby New Paris, Ind.

It announced, during November, its intent to close the Elkhart plant due to “continued poor conditions” in the van conversion and towable RV sectors.

However, Flexsteel anticipates being able to offer former Elkhart plant employees jobs at the New Paris plant as market conditions improve this spring.

Otherwise, Flexsteel’s second fiscal quarter sales declined 11% to $65.8 million and its RV seating sales revenue slipped 12% during that period.

During the first half of its fiscal year 2001, Flexsteel’s earnings declined 75% to $908,000 and its sales revenue slipped 10% to $129 million. Its RV seating sales also declined 10% during the six months ended Dec. 31.