Furniture Brands International Reports 2010 Third Quarter Financial Results

• Net sales of $272 million, a decrease of 7% from the third quarter of 2009
• Net loss of $2.1 million compared to a loss of $23.5 million in third quarter of 2009
• Gross margin of 24.8% compared to 23.1% in third quarter of 2009

ST. LOUIS, Nov. 3, 2010 (GLOBE NEWSWIRE) -- Furniture Brands International (NYSE:FBN) announced today its financial results for the third quarter and nine months ended September 30, 2010.

Net sales for the 2010 third quarter were $272.0 million compared to net sales of $293.7 million in the third quarter of 2009. Net sales for the third quarter of 2010 reflect the timing of the company's annual mid-year manufacturing shutdown, which occurred in the third quarter of 2010 versus the second quarter of 2009. The company estimates that the timing of the weeklong shutdown resulted in an approximately $11 million negative variance in the comparison of third quarter 2010 and 2009 net sales. The year-over-year sales comparison was also negatively affected by the company's exiting two unprofitable lines of ready-to-assemble business.

Gross margin for the third quarter of 2010 improved to 24.8% compared with 23.1% in the third quarter of 2009. For the 2010 third quarter, Furniture Brands reported a net loss of $2.1 million, or $0.04 per diluted share, compared to a net loss of $23.5 million, or $0.49 per diluted share, in the third quarter of 2009. Results for the quarter include $3.8 million in restructuring charges that are primarily associated with the company's previously announced closure in early 2011 of a casegoods facility in Appomattox, VA. Financial results for the quarter also reflect a reversal of year-to-date compensation accruals totaling approximately $6.8 million.

For the nine months ended September 30, 2010, the company reported net sales of $883.8 million and net income of $5.7 million, or $0.11 per diluted share, compared to net sales of $938.8 million and a net loss of $43.7 million, or $0.90 per diluted share, for the nine months ended September 30, 2009. Results for all periods include selected items that are detailed in a table attached to this press release.