
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, April 22, 1994                   TAG: 9404220209
SECTION: BUSINESS                    PAGE: A7   EDITION: METRO 
SOURCE: SANDRA BROWN KELLY STAFF WRITER
DATELINE:                                 LENGTH: Medium

STANLEY REPORTS RECORD SALES

Stanley Furniture Co. Inc. on Thursday reported record first quarter sales of $44.7 million, a 26 percent increase from last year's first quarter. Stanley also reported record first quarter earnings from continuing operations, excluding non-recurring items, of $947,000, or 20 cents per share, compared to $305,000, or 10 cents per share in the 1993 quarter.

However, because of a loss for the Norman's of Salisbury division it is closing June 20, the first quarter report is a net loss of $372,000 or 8 cents per share.

The closing of the Salisbury, N.C., division will result in the layoff of 175 to 185 people, Stanley said.

Stanley recorded an after-tax provision of $2.76 million, or 57 cents per share, as a loss from the discontinued Norman's operations. That was partially offset, however, by the $1.44 million after-tax, or 29 cents per share, gain from the final insurance settlement on a 1993 fire that destroyed one of its Henry County plant buildings.

This is the third consecutive quarter that the Henry County manufacturer has reported record sales and earnings. The record 1994 first quarter sales came despite the severe weather conditions that hurt production and depressed retail sales nationwide. However, last year's first quarter sales were also adversely affected by the fire that destroyed a chair plant.

The burned plant has been rebuilt.

"Our products are selling extremely well, and our rebuilt Stanleytown plant, which has been reengineered for maximum efficiency, had a favorable impact on profitability," said Albert Prillaman, president and chief executive officer.

The company, which makes casegoods, recently announced that it will introduce a line of upholstered furniture. The upholstered line will debut the International Home Furnishings Market in October and coincide with the company's introduction of the Saturday Evening Post/Norman Rockwell Home Furnishings Collection. This is a licensing program that consists of casegoods and upholstery inspired by the 321 Post covers illustrated by Rockwell between 1916 and 1963.

Stanley will convert a portion of the Norman's facility to a cut and sew division for the upholstery operations. Some of the laid-off employees might be rehired for that operation, the company said.

by CNB