Thomas Russell -- Furniture Today, August 30, 2011
HONG KONG — Case goods and upholstery manufacturer Samson Holding's revenues declined 6.3% in the first half and net profit was down 82% from the same period a year earlier, the company reported.

The company, the parent of Chinese manufacturer Lacquer Craft and U.S. marketing companies Legacy Classic, Universal, Pennsylvania House and Craftmaster, reported sales of $206.7 million in the first half, down from $220.6 million a year earlier.

Samson, which reports in U.S. dollars, said its net profit of $3.5 million was down from $20 million in the first half of 2010.

Officials attributed the drop in sales to the continuing depressed U.S. housing market.

"Our sales performance was comparatively poorer than the same period of last year when there was a strong resurgence of demand in the U.S. as a result of retail restocking," the company said.

Profits have been affected by factors such as rising materials costs, rising labor costs and the strength of the Chinese currency. The company also saw its operating expenses for the period rise to $50 million, from $47.6 million, due to increased advertising and marketing expenses promoting its branded products.

The company said it spent more in capital expenditures during the period. Those costs, which rose to $2.4 million, from $1.2 million in 2010, were for equipment and construction at its China, Bangladesh and Indonesia case goods plants.

Despite the drops in sales and net profits, the company said it has a strong balance sheet. Samson said it had $322.1 million in cash on June 30, up from $290.9 million as of Dec. 31.

"The group's cash position remains strong and the group possesses sufficient cash and available banking facilities to meet working capital requirements and further enable us to expand through acquisitions with confidence," the report said.