STANLEYTOWN, Va., Sept. 13 /PRNewswire-FirstCall/ -- Stanley Furniture
Company, Inc. (Nasdaq: STLY) announced today that third quarter sales are
now expected to be below previously anticipated levels due to continued
weakness in retail furniture activity. The Company now anticipates a sales
decline of 8% to 10% compared to record shipments of $85.6 million in the
third quarter of 2005. Consequently, diluted earnings per share are now
expected to be $.27 to $.29, down from prior guidance of $.38 to $.41,
compared to record earnings of $.44 in the third quarter of 2005.
For total year 2006, sales are now expected to decline 4% to 7%
compared to 2005 and diluted earnings per share are now expected to be
$1.24 to $1.32 compared to $1.77 for 2005. This guidance excludes any
potential receipt of funds from the Continued Dumping and Subsidy Offset
Act involving tariffs collected by the U.S. government on wooden bedroom
furniture imported from China.
"Third quarter sales to date have been weaker than previously
anticipated and we believe this is a result of overall industry
conditions," commented Jeffrey R. Scheffer, chairman, president and chief
executive officer. "We have not seen any significant change in order trends
since Labor Day and we are projecting these business conditions to persist
for the remainder of 2006 in our revised guidance," Scheffer concluded. The
Company plans to announce third quarter operating results on October 16,
2006.
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. Its common stock
is traded on the Nasdaq stock market under the symbol STLY.
Forward-Looking Statements
Certain statements made in this report 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 our 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, disruptions in offshore sourcing
including those arising from supply or distribution disruptions or those
arising from changes in political, economic and social conditions, as well
as laws and regulations, in China or countries from which we source
products, international trade policies of the United States and countries
from which we source products, manufacturing realignment, the inability to
raise prices in response to inflation and increasing costs, the cyclical
nature of the furniture industry, the inability to obtain sufficient
quantities of quality raw materials in a timely manner, failure to
anticipate or respond to changes to consumer tastes and fashions in a
timely manner, business failures or loss of large customers, environmental
compliance costs, and extended business interruption at manufacturing
facilities.
Any forward-looking statement speaks only as of the date of this press
release, and we undertake 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/
http://www.prnewswire.com/comp/117677.html/
CONTACT:
Douglas I. Payne, Executive Vice President -
Finance and Administration, +1-276-627-2157,
dpayne@stanleyfurniture.com or Anita W. Wimmer, Vice President -
Controller and Treasurer, +1-276-627-2446,
awimmer@stanleyfurniture.com, both of Stanley Furniture Company,
Inc.
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