Flexsteel earnings dip as sales slow

Flexsteel Industries of Dubuque reported lower profits and earnings in its second quarter, as sales and margins dipped at the furniture manufacturer.

Earnings per share declined 31 percent to 31 cents per share from 45 cents per share in the second quarter of the previous fiscal year. Net income was down 30 percent to $2.1 million in the quarter, which ended Dec. 21, 2010, from $3 million.

Flexsteel reported sales of $82.8 million for the quarter, down from $83.5 million in the year-earlier quarter.

Company officials said residential furniture orders slowed in the quarter, while commercial product sales continued at low levels. The company said it does not expect significant improvements in the second half of fiscal 2011 fiscal year, and is beginning to see upward pressure on the price of certain raw materials.