Furniture maker Amisco breaks even for the year amid Asian competition

L’ISLET, Que. (CP) – Quebec steel-tubular furniture maker Amisco Industries Ltd. (TSX:IAC) barely broke

even last year, afflicted by Chinese imports and the strong Canadian dollar.
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Amisco said Tuesday its sales were down 20 per cent at $35.3 million in the year ended Nov. 30, and earnings declined to $19,214 or half a cent per share.
This compared with $2.1 million or 52.5 cents per share in the previous year, when sales were $44.1 million.
“The reduction in sales and profitability was caused by the Asian competition, the transformation of the retail furniture industry and, above all, the decline in the average rate used to convert its U.S. sales into Canadian dollars,” the company stated.
Annual sales in Canada fell 18 per cent to $12.3 million while U.S. sales slumped 21 per cent to $23 million. The U.S. sales were booked at an average Canadian-dollar conversion rate of 80 cents, against 66.4 cents in 2016 when Amisco benefited from advantageous hedging. In U.S.-dollar terms, the company’s sales in the United States slipped only 4.8 per cent.
Fourth-quarter earnings were $181,855, four cents per share, compared with year-earlier net income of $679,900, 16 cents per share, as three-month sales declined to $8.1 million from $11.9 million. Canadian sales fell 27 per cent to $3.1 million and U.S. sales fell 35 per cent to $4.9 million.
The 200-employee company, in business since 1954, said it retains a solid balance sheet, with no bank loans or long-term debt, and current assets worth 2.28 times current liabilities.