La-Z-Boy moves to 2Q profit as costs drop

AP News
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Posted: Nov 17, 2009 5:31 PM

La-Z-Boy Inc. said Tuesday it moved to a profit in the second quarter from a year-ago loss, as lower restructuring and operating costs offset weaker sales.

The furniture seller earned $5.9 million, or 11 cents per share, in the quarter that ended Oct. 24. That compares with a loss of $53.7 million, or $1.05 per share, a year earlier.

Excluding a 1 cent per share restructuring charge, La-Z-Boy's per-share profit of 12 cents met a consensus estimate of analysts polled by Thomson Reuters. The company, based in Monroe, Mich., reported lower interest payments, taxes and operating costs in the most recent quarter.

Revenue fell 9 percent to $300.7 million from $331.9 million, but still topped the $285 million that analysts had expected.

"Although the magnitude of volume declines is not as great as we experienced over the last several quarters, we remain concerned about the overall macroeconomic environment and it is too early to predict a recovery for our industry," said President and CEO Kurt L. Darrow, in a statement.

La-Z-Boy shares fell 20 cents to close at $7.18 on Tuesday.