National Lumber Reports Fiscal 1989 Loss of $4.6 Million

National Lumber reported a loss of $4.6 million for the fiscal year ended Jan. 31 as the Fountain Valley firm continued to struggle in the retail do-it-yourself home improvement business.

The results for the year brought the company’s losses over the last 3 years to $6.8 million.

The loss reported for fiscal 1989 compared to a net earning figure of $228,758 for the previous year. Revenue for the year fell 4% to $152 million from $158.8 million.

For the fourth quarter, National Lumber reported a loss of $2 million; it lost $479,432 for that quarter the year before. Revenue for the quarter declined 7% to $35.3 million from $37.9 million.

Analysts have said that National Lumber, which operates 20 stores in Southern California, is struggling to remain competitive in a market that is becoming dominated by large do-it-yourself firms owned by retailing giants such as K mart, which have greater marketing and buying power. In addition, Sears’ major restructuring this year has led to price-cutting industrywide.

National Lumber Vice President V.J. Carnevale, who attributed the quarter’s loss to sluggish consumer spending, said his company is competitive and can remain so.

President Melvin Jaffee said in a prepared statement that the company is in the process of making major administrative, personnel and marketing changes to spur sales and reduce costs.

Carnevale said there are no plans to close stores or lay off personnel. Rather, the savings will come through a new computerized inventory control system that also will help manage labor costs, he said.

National Lumber’s stock price has gained 57% in the last week, raising speculation that the company may be preparing to announce a major reorganization or possibly a sale. The stock closed Tuesday at $2.75 per share, down 12.5 cents on the over-the-counter market.

Carnevale said there have been no merger talks and that there are no plans to sell the company.