Flexsteel posts record 3rd-quarter earnings, higher residential sales

DUBUQUE -- Northeast Iowa employer Flexsteel Industries on Wednesday reported higher third-quarter earnings on improved residential and commercial sales.

The Dubuque based designer, manufacturer, importer and marketer of upholstered and wood furniture posted net income of $3.3 million, or 48 cents per share, up 36.2 percent from $2.5 million, or 35 cents per share, in the third quarter of fiscal 2011.

Sales improved 7.6 percent to $91.6 million in the quarter that ended March 31 from $85.2 million in the same period last year.

Flexsteel focuses on designing and manufacturing furniture for the residential, recreational vehicle, office, hospitality and healthcare markets.

The company said residential sales rose 9.6 percent to $71.2 million in the third quarter from $65 million in the same period a year ago. Commercial furniture sales were virtually unchanged at $20.4 million, compared with $20.2 million in the prior year quarter.

For the nine months that ended March 31, residential furniture sales increased 3.6 percent to $200.7 million from $193.7 million in the nine months that ended March 31, 2011. Commercial furniture sales declined 6.6 percent to $57.5 million in the nine months that ended March 31 from $61.5 million in the same period last year.

Flexsteel reported capital expenditures of $5.3 million during the first nine months of fiscal year 2012, including $3.6 million related to construction of a corporate office building. The company said it expects capital expenditures of about $7 million for the remainder of fiscal 2012, including costs related to the corporate office building that is projected for completion by August.

In a statement accompanying its earnings, Flexsteel said orders for residential upholstered products have improved significantly in relation to prior year levels and it expects that trend to continue through the end of the year.

Flexsteel said its commercial office order rate has increased modestly. The company is projecting flat order trends for vehicle and hospitality seating products for the remainder of the calendar year.