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Furniture maker trims losses in second quarter

August 19, 2009

West Lafayette furniture maker Chromcraft Revington Inc. narrowed its losses in the second quarter by shedding unprofitable products, closing plants and reducing expenses, the company said yesterday.

Chromcraft reported a loss of $2.5 million, compared with a loss of $6 million during the second quarter a year ago. Revenue fell to $14.6 million, from $25.6 million in the year-ago period.

Chromcraft has struggled to regain profitability at a time that it and other domestic furniture manufacturers face rising low-cost competition from China and other developing nations.

As part of its restructuring, the company is “moving away from a high-cost manufacturing model to a global-sourcing model with lower costs,” CEO Ronald H. Butler said in a prepared statement.

In 2008, Chromcraft closed a 150-employee manufacturing plant in Delphi. The action was the latest in a string of closings in the past two years as the company moved more production overseas.

Company stock is trading at 80 cents a share after reaching a 52-week high of $3.05 last September. 
 

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