STANLEYTOWN, Va., June 11 /PRNewswire/ -- Stanley Furniture Company, Inc.
(Nasdaq: STLY) announced today that second quarter sales are now expected to
be below previously anticipated levels due to continued weakness in retail
furniture activity. Consequently, the Company now anticipates a sales decline
in excess of 20% compared to record shipments in the second quarter of 2000
and diluted earnings per share to be $.35 to $.40, down from prior outlook
of $.40 to $.45, and compared to $.67 last year.
"During the second quarter, retail furniture activity continued to weaken
with residential wood furniture incurring a more pronounced decline than other
segments of the furniture industry," commented Albert L. Prillaman, chairman
and chief executive officer of Stanley Furniture Company. "Since Memorial Day,
we have been encouraged by an improved order rate, with orders trending below
the comparable prior year period in the mid-single digits on a percentage
basis. We do not expect positive comparisons in sales and earnings until the
fourth quarter of this year. We now anticipate total year 2001 sales to
decline approximately 10% compared to last year and diluted earnings per share
of $2.10 to $2.40, down from prior outlook of $2.30 to $2.60, and compared to
$2.63 last year. We will continue to closely manage our cost and inventory
levels, and adjust production schedules to match order trends."
"Our Young America(TM) bedroom and home office categories have faired much
better than our collections (including bedroom and dining room) during this
slowdown. Therefore, we continue to believe the Company is well-positioned in
the marketplace, especially with the growth potential in these two
categories," concluded Mr. Prillaman.
The Company plans to report operating results for the second quarter
ending June 30, 2001 before the market opens on Tuesday, July 17, 2001.
A conference call will be held on June 12, 2001 at 10:00 a.m. Eastern
Time, to review this press release. The dial-in-number is 913-981-5522. A
replay will be available through June 19, 2001. The dial-in-number for the
replay is 719-457-0820 with an access code of 690832.
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, Lexington, and West End, NC. Its common
stock is traded on the Nasdaq stock market under the symbol STLY.
For more information, visit the web site at
http://www.stanleyfurniture.com .
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," "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 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, competition in the
furniture industry, capital costs and general economic condition. 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/comp/117677.html or fax,
800-758-5804, ext. 117677
CONTACT:
Douglas I. Payne, Exec. V.P. of Finance and
Administration, 540-627-2157 or dpayne@stanleyfurniture.com; or
Anita W. Wimmer, Treasurer, 540-627-2446 or
awimmer@stanleyfurniture.com, both of Stanley Furniture Company,
Inc.
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