STANLEYTOWN, Va., June 10 /PRNewswire-FirstCall/ -- Stanley Furniture
Company, Inc. (Nasdaq: STLY) announced today that second quarter sales are
expected to be below the guidance provided in mid-April (an increase of 10% to
14% compared to the second quarter of 2001) due to softer than anticipated
retail wood furniture activity in late May and early June. The Company now
expects a sales increase in the range of 3% to 5% compared to the second
quarter of 2001 and diluted earnings per share before restructuring and
related charges to be $.44 to $.47, down from prior outlook of $.52 to $.57,
and compared to $.38 last year.
"Orders for our day-to-day business have been weaker than anticipated due
to soft retail environment for wood furniture since Memorial Day," commented
Albert L. Prillaman, chairman and chief executive officer. "However, we have
been very encouraged by the response to our new product introductions from the
April International Home Furnishings market which will begin shipping in the
third quarter. Also, our offshore sourcing initiatives and the realignment of
manufacturing facilities continue to progress well. With the new product
introductions, our lower cost structure, and an improving U.S. economy, we
continue to expect total sales for 2002 to increase 5% to 8% with diluted
earnings of $2.35 to $2.55 per share excluding restructuring and related
charges."
The Company also announced that all closing activities have been completed
at its former West End, North Carolina facility including the relocation of
equipment and the sale of the real estate. Accordingly, the Company now
expects the final restructuring and related charges to be less than $1 million
pretax in the second quarter of 2002.
The Company plans to report operating results for the second quarter
ending June 29, 2002 before the market opens on Tuesday, July 16, 2002.
A conference call will be held on June 11, 2002 at 10:00 a.m. Eastern Time
to review this press release. The dial-in-number is 706-679-8542. A replay
will be available through June 18, 2002. The dial-in-number for the replay is
706-645-9291 with an access code of 4515127.
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, NC. Its common stock is
traded on the Nasdaq stock market under the symbol STLY.
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," "expects," "estimates,"
"may," "will," "should," or "anticipates" or the negative thereof or other
variations thereon or comparable terminology. 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, successful implementation of expanded
offshore sourcing, the cyclical nature of the furniture industry, fluctuations
in the price of 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.
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Related links:
http://www.stanleyfurniture.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/117677.html
CONTACT:
Douglas I. Payne, Executive V.P. - Finance
and Administration, +1-276-627-2157, dpayne@stanleyfurniture.com,
or Anita W. Wimmer, Treasurer, +1-276-627-2446,
awimmer@stanleyfurniture.com, both of Stanley Furniture Company,
Inc.
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