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KNAPE & VOGT FOURTH QUARTER SALES RISE, EARNINGS SLIP ON WEAK CANADIAN ECONOMY; FISCAL YEAR RESULTS SHOW IMPACT OF EARLIER SOFTNESS

 GRAND RAPIDS, Mich., Aug. 10 /PRNewswire/ -- Knape & Vogt Manufacturing Company (NASDAQ-NMS: KNAP) today reported higher sales in the fourth quarter ended June 30, 1993, arising from an increasing demand for drawer slide products. The reported a decline in net income for the fourth quarter due to the continued weak Canadian economy and inventory writedowns. The company said the fourth quarter sales gains did not offset the weak sales performance in previous quarters, resulting in a slight decline in sales for the fiscal year ended June 30, 1993. Net income for the year was primarily affected by a major restructuring charge in the third quarter.
 Net income in the fourth quarter slipped 12.2 percent to $1,367,594, or $0.26 per share, from $1,558,286, or $0.29 per share, reported a year ago. For the quarter, sales increased 3.6 percent to $31.7 million from $30.6 million a year earlier.
 For the fiscal year ended June 30, 1993, sales declined $1.5 million, or 1.2 percent to $123.4 million from $124.9 million in the comparable period a year ago. Sales at its two Canadian operations were down $5.2 million, or 21 percent due to the weak Canadian economy, the lower Canadian dollar and the decline in sales to a major store fixture customer.
 Earnings for the year declined 16.8 percent to $5.5 million, or $1.04 per share, from $6.6 million, or $1.26 per share, a year earlier. Fiscal 1993 results include the after-tax effect of the restructuring charge involving the company's Roll-it subsidiary of $963,000, or $0.18 per share. Net income, excluding the restructuring charge and a decline in earnings at its Canadian operations, was $7.2 million, or 5.8 percent of sales compared to $6.6 million and 5.3 percent of sales in 1992. Per share earnings for the year-ago fourth quarter and fiscal year periods have been adjusted to reflect the 10 percent stock dividend paid on Sept. 11, 1992.
 Raymond E. Knape, chairman, president and chief executive officer, said, "Our fourth quarter sales performance was driven by increased sales of precision slides and European type drawer slides.
 "Sales and earnings for the year were up at the parent company and Feeny," added Knape. "Sales at the parent company were up 3.7 percent and earnings were up 14.7 percent. Sales at our Feeny subsidiary were up 12.9 percent and earnings were up 15.2 percent for the year.
 "Sales at Modar, our Benton Harbor, Mich.-based subsidiary, were down 7.3 percent for the fourth quarter and 3.4 percent for the fiscal year. This was due to customers reducing their commitments for contract furniture. Modar recorded a loss for the quarter due to inventory writeoffs," Knape said.
 Knape & Vogt manufactures well-attached and freestanding shelving and a wide variety of home furnishing items and also derives nearly one- half of its sales from drawer slides for OEM office furniture, kitchen and utility cabinet manufacturers.
 -0- 8/10/93
 /CONTACT: Richard C. Simkins, vice president - finance of Knape & Vogt, 616-459-3311, ext. 203; or Jack Quenney or Mike Arneth of FRB Chicago, 312-266-7800; or Regina Ryan of FRB New York, 212-661-8030/
 (KNAP)


CO: Knape & Vogt Manufacturing Company ST: Michigan IN: SU: ERN

WB -- NY055 -- 1190 08/10/93 12:16 EDT
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Publication:PR Newswire
Date:Aug 10, 1993
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