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Furniture supplier Flexsteel Industries Inc. reported declines in sales and earnings for the Dubuque, Iowa-based company’s second fiscal quarter ended Dec. 31, attributed to cost increases in steel and other raw materials.
Sales dropped 3.7% for the fiscal quarter to $105 million compared with $109 million the year prior. Net income decreased from $3 million the previous year to $1.6 million.
Revenues for the six months increased 9.1% to $203 million versus $186 million the year prior while net income was $2.8 million compared to $4.9 million.
Recreational vehicle sales declined 5.4% to $18.9 million for the quarter and grew 0.8% to $40.7 million for the six months.
Flexsteel reported that for calendar year 2004 “the cost of steel and component parts that have steel content and petroleum related items, including fuel and poly foam, have remained high or have continued to increase in cost.”
The company initiated actions to counteract the hike in material costs, including selected price increases and implementation of cost control measures for inventories and capital assets.