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Ameriwood sees sales dropping 3.5%-4.5%.

GRAND RAPIDS, Mich. - Ameriwood Industries, a maker of ready-to-assemble furniture based here, said it expects to report a 3.5 percent to 4.5 percent decline in sales for the third quarter ended Sept. 30.

As a result, the RTA maker said it expects to post a loss of between $0.07 and $0. 11 per share in the period.

According to Jay Miglore, Ameriwood's president and chief executive officer, the company attributed the expected decline to a difficult environment for regional discounters, the firm's largest unassembled furniture distribution channel, and consumer electronic retailers.

Miglore said discount retailers are suffering from a combination of softer-than-expected consumer spending and competitive pressures from dominant players in the category.

Regional discount retailers, specifically in the Northeast, have been particularly hard hit, he observed. The impact of lower sales is compounded by retailers reducing apparent over-inventory positions beyond adjusting for the current sales volume.

The overall retail environment and the declaration of Chapter 11 bankruptcy by a significant customer, Caldor Corp., during the quarter will probably force Ameriwood to increase its bad debt reserve, Miglore added.

"We are operating in a very difficult environment," Miglore noted. "The weak environment in the discount retailer segment and the reactions of our customers in that segment of the market are having effects on every aspect of our business.
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Title Annotation:Ameriwood Industries
Publication:HFN The Weekly Newspaper for the Home Furnishing Network
Article Type:Brief Article
Date:Oct 23, 1995
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