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Published: Wednesday, 8/15/2007

La-Z-Boy loses $8.7 million

MONROE - La-Z-Boy Inc. is another area company whose performance has sunk deep into its financial seat.

The Michigan furniture maker reported an $8.7 million loss, or 17 cents a share, yesterday for its latest fiscal quarter, on sales that slumped to $344 million, down nearly 13 percent from a year earlier.

A tough national economy and charges related to the Monroe company's cost cutting contributed to the weaker numbers in what is typically its slowest quarter.

But " we do not believe today's revenue stream is indicative of the run rate for the next 12 to 18 months," Kurt Darrow, company chief executive, said in a statement.

Yesterday's report was for the firm's fiscal first quarter, which ended June 28. For the year-ago period, the company had a profit of $2.3 million, or 4 cents a share, on sales of $394 million.

Sales of upholstered furniture dropped 14 percent, and sales of wood furniture were down 12 percent. Sales at La-Z-Boy stores fell 13 percent.

The financial report was issued after the stock market closed yesterday, when La-Z-Boy shares finished at $9.60.

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