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Furniture suppler Flexsteel Industries Inc. reported lower revenue and earnings for its fiscal second quarter, ended Dec. 31, impacted by a 67% decline in recreational vehicle sales.
The Dubuque, Iowa-based company said sales for the quarter fell 20% to $84.5 million from $106 million in the year-ago period and net income was $0.3 million compared to $1.9 million. The company noted that earnings included a recorded pre-tax charges of approximately $0.5 million related to facility consolidation.
For the six months, Flexsteel reported sales decreased 15% to $176 million compared to $206.9 million the prior year while the company incurred a net loss of $0.5 million compared to net income of $3.1 million. Flexsteel said it recorded pre-tax charges of approximately $1.8 million related to facility consolidation.
A breakdown by sector in the second quarter showed: residential sales dropped 14% to $58.1 million; RV sales fell 67% to $4.9 million compared to $14.9 million the previous year; and commercial sales declined 9% to $21.5 million. RV sales retreated 65% to $10.9 million for the six months.
Flexsteel reported that the consolidation of manufacturing operations announced on Sept. 10, 2008, had been substantially completed by Dec. 31. Significant work force reductions have taken place at other facilities as the company “continues to adjust operations to bring production capacity in line with current and expected demand for products.”
Employment has been reduced approximately 25% over the past year, the company said.