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Broyhill Furniture Industries Announces Closing of Case Goods Manufacturing Facility

Posted on: Thursday, 3 November 2005, 09:00 CST

Broyhill Furniture Industries, a subsidiary of St. Louis, Missouri based Furniture Brands International (NYSE: FBN), announced today the closing of one case goods manufacturing facility and an accompanying support plant both located in Lenoir, North Carolina.

The Lenoir Chair #1 plant is a 313,000 square foot case goods manufacturing facility and employs 345 people. The support plant is a veneering operation of roughly 120,000 square feet and employs 76 people. These closings will entail the elimination of all 421 salaried and hourly jobs and the plants will cease manufacturing operations by January 1, 2006.

Furniture Brands estimates the restructuring, asset impairment and severance charges associated with these closures will total approximately $3.3 million ($2.1 million net of income tax benefit), or 4 cents per diluted common share. Substantially all of these charges will be taken in the fourth quarter of 2005 and are in addition to the 4 cents of previously announced fourth quarter charges.

Furniture Brands International is America's largest home furnishings manufacturer, manufacturing and sourcing its products under six of the best-known brand names in the industry - Broyhill, Lane, Thomasville, Henredon, Drexel Heritage and Maitland-Smith. The company markets its products across a broad spectrum of price categories and distributes its products through an extensive system of independently owned national, regional and local retailers.

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the company's expected earnings per share, the prospects for the overall business environment, and other statements containing the words "expects,""anticipates,""estimates,""believes," and words of similar import. The company cautions investors that any such forward-looking statements are not guarantees of future performance and that certain factors may cause actual results to differ materially from those in the forward-looking statements. Such factors may include: overall business and economic conditions and growth in the furniture industry; changes in customer spending patterns and demand for home furnishings; competitive factors, such as design and marketing efforts by other furniture manufacturers; pricing pressures; success of the marketing efforts of retailers and the prospects for further customer failures; the company's success in furniture design and manufacture; the effects of manufacturing realignments and cost savings programs; and other risk factors listed from time to time in the company's public releases and SEC reports, including but not limited to the most recent reports on Forms 10-Q and 10-K. The company also cautions investors that our forecast for the fourth quarter of 2005 represents our outlook only as of this date, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

Source: Business Wire

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