STANLEYTOWN, Va., March 11 /PRNewswire-FirstCall/ --
Stanley Furniture Company, Inc. (Nasdaq: STLY) today announced plans to
realign production at its Lexington, N.C., facility.
Currently this facility produces a combination of adult bedroom and Young
America(R) youth bedroom furniture. After a transition period, the Lexington
plant will focus exclusively on Young America(R) products. Adult bedroom
products currently manufactured at the Lexington facility, will be absorbed by
the Stanleytown, Va. plant, which will produce all adult bedroom and dining
room products. The Martinsville, Va. location will continue to manufacture
home entertainment and home office furniture while the Robbinsville, N.C.
plant remains focused on the production of Young America(R) products. The
realignment will reduce operations at the Lexington plant impacting
approximately 150 of the 525 associates there.
"This realignment allows us to better focus manufacturing operations,
thereby producing the most suitable products in each plant and enabling the
Company to operate all of our facilities more efficiently," commented Jeffrey
R. Scheffer, president and chief executive officer. "We sincerely regret the
impact on some of our Lexington associates. However, these difficult
decisions are necessary for the long-term competitiveness of the Company. We
believe the blending of efficient domestic manufacturing in tightly focused
facilities, with intelligent outsourcing of certain component parts and
finished goods, provides a competitive advantage by offering higher value and
well-styled furniture, without sacrificing our culture of high quality and
shorter delivery times."
"While the economy is extremely uncertain, we reaffirm our sales and
earnings guidance for the first quarter of and total year 2003. Accordingly,
net sales should be between $58 million and $61 million and diluted earnings
per share in the range of $.47 to $.52 for the first quarter of 2003. The
combination of severe winter weather, geo-political issues, and the general
economy continue to create a challenging business environment. These issues
combined with import competition make it imperative to improve operating
efficiencies. We are confident Stanley is positioned to compete in this
global environment very effectively," concluded Scheffer.
The Company plans to report results for the first quarter on
April 16, 2003.
Established in 1924, Stanley Furniture Company, Inc. is a leading
manufacturer of wood furniture targeted at the upper-medium price range of the
residential market. Manufacturing facilities are located in Stanleytown and
Martinsville, Va. and Robbinsville and Lexington, N.C.
Certain statements made in this release are not based on historical facts,
but are forward-looking statements. These statements can be identified by the
use of forward-looking terminology such as "believes," "estimates," "expects,"
"may," "will," "should," or "anticipates" or the negative thereof or other
variations thereon or comparable terminology, or by discussions of strategy.
These statements reflect the Company's reasonable judgment with respect to
future events and are subject to risks and uncertainties that could cause
actual results to differ materially from those in the forward-looking
statements. Such risks and uncertainties include competition in the furniture
industry including competition from lower-cost foreign manufacturers, the
Company's success in implementing its blended strategy of expanded offshore
sourcing and domestic manufacturing, disruptions in offshore sourcing
including those arising from supply or distribution disruptions or changes in
political or economic conditions affecting the countries from which the
Company obtains offshore sourcing, the cyclical nature of the furniture
industry, fluctuations in the price for lumber which is the most significant
raw material used by the Company, credit exposure to customers in the current
economic climate, capital costs and general economic conditions. Any
forward-looking statement speaks only as of the date of this press release,
and the Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new developments or
otherwise.
SOURCE Stanley Furniture Company, Inc.
 back to top
Related links:
http://www.stanleyfurniture.com
Company News On-Call:
http://www.prnewswire.com/comp/117677.html
CONTACT:
Media - Robin Campbell, Manager, Advertising
and Marketing Services, +1-276-627-2245,
rcampbell@stanleyfurniture.com, or Investor - Douglas I. Payne,
Executive V.P., Finance and Administration, +1-276-627-2157,
dpayne@stanleyfurniture.com, both of Stanley Furniture Company,
Inc.
|
