Dubuque-based Flexsteel posts lower earnings, higher sales in quarter
Company expects moderate top line growth, residential growth to continue
Flexsteel Industries reported lower second-quarter earnings on higher sales compared with the same period last year.
The Dubuque-based residential and commercial furniture designer and manufacturer posted net income of $4.2 million, or 60 cents per share, for the quarter that ended on June 30, down 4.1 percent from $4.4 million, or 64 cents per share, for the second quarter of 2012.
Flexsteel's second-quarter sales rose 9 percent to $102 million from $94 million for the same period last year.
Residential net sales were $82 million in the current quarter, up 10 percent from $75 million in the second quarter of 2012, reflecting growth from existing customers and products, and expansion of the company's products and customer base. Commercial net sales edged up to $20 million from $19 million in the second-quarter of 2012.
For the fiscal year that ended on June 30, net income increased to $13.2 million from $13.1 million in the prior fiscal year. Earnings per share slipped to $1.87 in fiscal 2013 from $1.93 in fiscal 2012.
Sales rose 10 percent to $386 million in fiscal 2013 from $352 million in the prior fiscal year. Residential net sales were $311 million in fiscal 2013, up 13 percent from $275 million in the prior fiscal year.
Commercial net sales were $75 million in the fiscal 2013, down slightly from $77 million in the prior fiscal year.
Flexsteel, in comments accompanying the earnings release, said it expects moderate top line growth will continue through the end of 2013. Residential growth is expected to continue with existing customers and products, and through expanding the company's product portfolio and customer base.
Flexsteel expects demand for its commercial products to remain at existing levels through the remainder of this calendar year.