Fiscal year 2006 will mark the sixth straight year of declining sales for O'Sullivan Industries, according to the company's quarterly report, filed today with the Securities and Exchange Administration.
Company officials blamed "a decline in the RTA furniture market, increased competition from foreign and domestic competitors, a product mix reflecting more promotional merchandise, and higher raw material costs, principally particleboard and
fiberboard and higher freight costs."
The report said operating loss was $393,000 in the third quarter, which was far better than the $4.2 million loss during the third quarter of 2005.
As noted in the June 7 Turner Report, company officials say they paid the firms that helped them go through their recent Chapter 11 bankruptcy $16 million.
The report also noted the elimination of the plant at South Boston, Va., which resulted in a loss of 200 jobs and the addition of 150 employees over the next 12 months at the Lamar plant.