Fireplace Manufacturers Sees Gain

Fireplace Manufacturers Inc. posted a 40% gain in net income for the second fiscal quarter, while sales dropped 12%.

Net income rose to $326,000, or 10 cents a share, for the three months ended Sept. 30, from $233,000, or 7 cents a share, a year ago. Sales declined to $7.4 million from $8.4 million.

First half net income rose 48% to $600,000, or 18 cents a share, from $405,000, or 12 cents a share, for the first six months of the prior fiscal year. Sales dropped 12% to $15.1 million from $17.1 million.

The company attributed the sales declines to cutting less profitable customers and product lines from its portfolio.

Fireplace Manufacturers also said its board approved the repurchase of an additional 250,000 shares of the company’s common stock from time to time in the over-the-counter market and directly from shareholders. To date, it has repurchased about 500,000 shares.