Bassett Furniture Warns of Weak Profit
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Bassett Furniture Industries Inc. became the latest U.S. furniture manufacturer to forecast disappointing second-quarter earnings amid industry-wide low margins, high inventories and weak retail demand.
The Bassett, Va.-based company said its second-quarter earnings would fall well short of Wall Street expectations due to the bankruptcies of two major customers, Heilig-Meyers and Montgomery Ward, and the weak furniture retailing climate.
Bassett said that excluding restructuring costs, it expects to break even for its fiscal second quarter, which ended last month. It plans to log restructuring charges of 4 to 7 cents per share related to the closing of two wood plants last year. Analysts on average were expecting earnings of 26 cents.
Bassett shares fell 45 cents to $13.19 on Nasdaq.
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