Wednesday after the closing bell, Furniture Brands International (FBN), a manufacturer of residential furniture products, reported a decline in second quarter profit, as a general depression in market conditions reduced revenue 11%. Adjusted earnings per share were, however, better than what Wall Street had estimated. The company also provided earnings per share outlook for the third quarter.The St. Louis, Missouri-based company said second quarter profit plunged to $5.81 million or 12 cents per share from $16.98 million or 35 cents per share. On an adjusted basis, net earnings slumped to $4.49 million or 9 cents per share from $17.49 million or 36 cents per share in the prior-year quarter. On average, three analysts polled by First Call/Thomson Financial expected the company to report a loss of 4 cents per share.This year's results were impacted by restructuring charges of 2 cents and termination of hedge accounting of 5 cents that together reduced earnings by 3 cents in the quarter. Last year, results were positively impacted by a restructuring charge of 1 cent.Gross profit slipped to $115.82 million from $136.16 million. Net sales declined to $535.22 million from $601.28 million, yet exceeded Street view of $532.29 million. Cash and cash equivalents as of June 30, 2007, were $92.54 million, while they were $26.57 million as of December 31, 2006. Inventories for both periods were $482.86 million and $502.07 million, respectively.For the first quarter, the company reported net income of $2.9 million or $0.06 per share, down from $30.2 million or $0.61 per share in the same quarter last year. Net sales for the quarter decreased 13% to $573.7 million from $661.4 million in previous year quarter. For the first half of the year, net earnings reduced to $8.69 million or 18 cents per share from $47.20 million or 96 cents per share. Net sales for six months dipped to $1.108 billion from $1.262 billion.The company, which makes Thomasville, Broyhill and Lane brands, noted that after several months of study, the company's management team has now concluded its strategic review of the industry and how Furniture Brands can best deliver value to its shareholdersCommenting on the second quarter results, W. G. Holliman, Chairman and Chief Executive Officer of the company, said: ``Our second quarter top-line performance reflects the continued difficult operating environment in the furniture industry. Sluggish economic activity has dampened demand for discretionary spending by many consumers. We are meeting this situation with fresh product offerings as well as promotions to keep our family of brands in the consumer's eye. The earnings per share impact of this downward trend was modestly offset this quarter by a gain related to a treasury lock agreement''Looking ahead to the third quarter, the company expects adjusted net earnings per common share to be in a range of $0.02 to $0.06. Street looks for third quarter earnings of 5 cents per share. On a GAAP basis, the range varies between a loss of $0.19 and $0.15.The company has been going through times, thanks to the housing slump as well as stricter conditions for borrowing. Earlier in the year, the company said it would close three North Carolina plants and reduce nearly 2% of its work force.Stock MovementFBN closed Wednesday's regular trade at $11.09, up $0.07 or 0.64%, on 1.58 million shares. The company's stock hit a 52-week low of $10.78 on July 30. The highest stock point in the past year was on October 11, 2006 at $20.96.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.