The effects of hurricanes Katrina and Rita have hit home for La-Z-Boy, Inc., according to a statement filed this week with the Securities and Exchange Commission.
CEO Kurt Darrow said the company, which employs more than 1,000 in Neosho, has been told that its supply of TDI (toluene diisocyanate) a key chemical component of polyurethane foam, which is used in upholstery, will be sharply reduced.
According to the filing, "The company also said that this situation,coupled with the continued soft retail environment and damage to one of its plants by a tornado spawned from Hurricane Rita will have a significant adverse impact on its results for the fiscal 2006 second quarter and potentially beyond."
The reduction of TDI, which has been estimated at 50 percent will affect La-Z-Boy more than others in the furniture industry "given the higher percentage of upholstery in our overall product mix," Darrow said.
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