The industry-wide slowdown that began in late 2005 worsened during 2006 and does not appear to be over.
Jeffrey R. Scheffer, President and CEO, Stanley Furniture Company

Stanley Furniture Company reported sales and earnings for the full year 2006 fell 7.8% from 2005. Fourth quarter sales of $70.6 million decreased 13.3% from the fourth quarter of 2005.

The Company recorded income of $4.4 million in the fourth quarter of 2006 from the receipt of funds under the Continued Dumping and Subsidy Offset Act of 2000 (CDSOA) in connection with the case involving wooden bedroom furniture imported from China. Excluding income from CDSOA (net of income taxes), earnings per share decreased 33.9% to $1.17 in 2006 compared to $1.77 in 2005, and 69.6% to $.14 per share in the fourth quarter of 2006 compared to $.46 in the year ago quarter.

"The industry-wide slowdown that began in late 2005 worsened during 2006 and does not appear to be over," commented Jeffrey R. Scheffer, President and Chief Executive Officer. "While we are disappointed with lower sales and earnings, I am confident we are a stronger, more efficient company today than we were a year ago."

"Near term we will continue to focus on controlling costs and inventories, and improving our product offerings. Longer term we remain focused on reducing costs, eliminating waste, and improving productivity, quality, and service through our continuous improvement efforts applying lean business principles," concluded Scheffer.