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 HIGH POINT, N.C., Jan. 12 /PRNewswire/ -- Addressing a home furnishings investment meeting this morning in New York City, LADD Furniture, Inc. (NASDAQ-NMS: LADF) chairman and chief executive officer Richard R. Allen said he expects LADD to report lower operating results for the fourth quarter of fiscal 1993, which ended January 1, 1994. Allen said LADD's fourth quarter results, to be formally reported in early February, will fall below both year-earlier levels and current investment analysts' expectations. He said the company is expecting to report a modest net loss for 1993's final quarter, on net sales of approximately $124 million. This would compare with fiscal 1992 fourth quarter net income of $1.3 million or $0.06 per share on net sales of $129 million.
 Allen cited two primary reasons for the quarter's 4 percent revenue decline: the previously-announced third quarter discontinuance of certain American of Martinsville residential furniture lines and continued sales weakness at Pennsylvania House - LADD's upper medium- priced furniture manufacturing company. "In addition to the sales shortfall," Allen said, "a number of the same factors which adversely affected LADD's 1993 third quarter profitability continued to hurt margins in the year's final three months. These included ongoing manufacturing inefficiencies relating to the restructuring of several Virginia- based LADD manufacturing plants, liquidation of discontinued product lines and additional selective plant downtime taken during the fourth quarter to control inventories."
 "As disappointing as these results are to us and to you as current or potential LADD shareholders," Allen told the investors attending the home furnishings seminar, "we believe the things which negatively impacted us in the fourth quarter are all temporary in nature and we anticipate substantially improved sales and earnings trends during 1994. "Among the positive influences Allen cited for the coming year were an improving home furnishings marketing environment, "Sparked by recent strong housing activity and rebounding consumer confidence, and indicated by impressively high same store sales comparisons reported late in 1993 by several leading national and regional home furnishings retailers." He said LADD also expects its 1994 profitability to benefit from completion of the VA plant restructurings, production and cost efficiencies flowing from LADD's $20-plus million annual capital investment program, a better industry pricing environment including reduced discounting, and the planned acquisition of Pilliod Cabinet Company, a major U.S. manufacturer of promotionally-priced wood bedroom and occasional furniture. Allen said Pilliod, which will be operated as an independent LADD subsidiary, will be additive to LADD's net earnings. Subject to the satisfactory conclusion of certain due diligence issues, the Pilliod acquisition is expected to be completed in late January.
 Headquartered in High Point, NC, LADD is the fourth largest North American manufacturer of residential furniture and a leading supplier of contract furniture to the guest room, government and health care markets domestically and abroad. LADD sells its wide range of wood, upholstered and metal furniture products under the major brand names American Drew, American of Martinsville, Barclay, Brown Jordan, Clayton Marcus, Daystrom, Fournier, Lea Industries and Pennsylvania House, and markets these products worldwide through LADD International. LADD also owns and operates two support companies, Lea Lumber & Plywood and LADD Transportation. LADD's stock is traded on the over-the- counter National Market System under the NASDAQ symbol LADF.
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 /CONTACT: John Ong of LADD Furniture, 910-888-6353/

CO: LADD Furniture, Inc. ST: North Carolina IN: REA SU: ERP

CM -- CH001 -- 1299 01/12/94 09:18 EST
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Publication:PR Newswire
Date:Jan 12, 1994

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