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Furniture supplier Flexsteel Industries Inc. today reported a slight increase in revenues for the company’s fiscal second quarter and first six months, despite a drop-off in recreational vehicle-related sales.
For the quarter, ended Dec. 31, the Dubuque, Iowa, firm posted sales of $106.3 million compared with $105.1 million the previous year. Net income, which the company said included a stock-based compensation expense of $0.4 million, was $0.5 million versus $1.6 million a year ago.
Sales for the six months totaled $203.7 million compared to $202.9 million in the prior year while net income, including the expense, fell to $1.5 million from $2.8 million.
Recreational vehicle sales during the quarter declined 15.8% to $15.9 million from $18.9 million the previous year and decreased 19.1% to $34.2 million for the six months.
Flexsteel said the furniture industry continues to be impacted by increases in energy costs and raw material along with competition from imported products.
“The second quarter was dominated by news of unprecedented cost increases for poly-foam and other materials with petrochemical content, which are major components in our seating products, as well as increases or expected increases in other key components such as fabric, steel and plywood,” the firm said in its earnings report.