08-11-2004, 03:24 AM
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#1 (permalink)
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| Forte User
Join Date: Jan 2004 Location: Newburgh, Indiana
Posts: 1,165
| Steinway Profits
Quote:
Steinway Reports 2nd Quarter 2004 Results
EPS $0.33 vs. $0.24
8/5/2004 4:00:00 PM
WALTHAM, Mass., Aug 5, 2004 /PRNewswire-FirstCall via COMTEX/ -- Steinway Musical Instruments, Inc. (LVB), one of the world's leading manufacturers of musical instruments, today announced results for the quarter ended June 30, 2004. Net sales increased 7% to $84 million and operating profit jumped 24%. For the second quarter, the Company posted EPS of $0.33, an increase of 38% over the prior year period.
Piano Operations
Second quarter piano sales increased 9% over the prior year period. Unit shipments of Steinway grand pianos rose 6% while increased demand both in the U.S. and overseas led to a 12% increase in shipments of the Company's mid- priced lines. Gross margins increased from 33.1% to 34.5% on favorable product mix and improved production efficiencies.
For the first six months, piano sales increased 17%, to $91 million from $77 million. Unit sales of Steinway grand pianos and Boston pianos both rose 13%. Improved retail sales, manufacturing productivity and favorable product mix contributed to an increase in gross margins from 33.0% to 34.4% for the six-month period.
Band Operations
Second quarter sales of band and orchestral instruments rose 6%, to $39 million. Unit shipments of brasswind & woodwind instruments rose 5% and shipments of percussion instruments more than doubled over the prior year period. Gross margins fell from 24.6% to 23.0% as the Company continued to sell through higher cost inventory produced in 2003. In addition, more dealers took advantage of cash discounts in the second quarter, negatively impacting gross margins.
For the first six months, sales were $83 million, consistent with prior year. In 2003, an unfavorable labor situation negatively impacted band gross margins. This period's more favorable labor environment, coupled with an increase in sales of higher margin imported student instruments, improved year to date gross margins from 21.6% to 22.8%.
| Well, Steinway is getting more profitable, and the band instrument division is certainly contributing. Notice how "higher margin imported student instruments" improved gross margins by 1.2% Not that much really, but that is the corporate world.
Jim |
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