Furniture supplier Flexsteel Industries Inc. reported a 12% decline in fiscal fourth-quarter sales, pulled down by weakness in all its core markets including a 35% drop in the RV revenue.
Last week, the Dubuque, Iowa-based firm announced the closing of two manufacturing facilities, impacting 250 workers.
Sales for the quarter, ended June 30, fell 12% to $100.6 million from $114.3 million the year prior while net income was $0.3 million compared with $5.8 million. Financial results for the prior year quarter reflected sale of a commercial property, which resulted in a pre-tax gain of approximately $4 million, and a non-taxable gain on life insurance of $0.5 million.
Fourth-quarter sales by sector included: residential net sales declined 6.4% to $66.9 million; commercial revenue was down 11.7% to $22.1 million; RV sales dropped $11.6 million compared to $17.7 million.
For the full year, sales dipped 4.6% to $405.7 million from $425.4 million a year ago while net income was $4.2 million compared to $9.3 million. In addition to the items listed for 2007 fourth-quarter results, the prior fiscal year also included the sale of vacant land, which resulted in a pre-tax gain of approximately $0.4 million.
Sales by sector for the fiscal year included: Residential sales were flat at $258.1 million compared to $259.7 million a year ago; commercial revenue decreased 8.1% to $91.5 million; RV sales declined 15.2% to $56.1 million.
Flexsteel said that several factors impacted performance including the credit crisis and the fall in value in the U.S. dollar coupled with rising costs for raw materials.
The company also reported its financial reports filed from 2004 to 2007 “can no longer be relied upon and should be restated due to errors in the consolidated financial statements.”