O'Sullivan reports 13.5% increase in second quarter

O'Sullivan Industries Holdings Inc. reported record second-quarter sales, up 13.5 percent compared to sales for the same quarter one year ago. For the company's second quarter, which ended Dec. 31, O'Sullivan reported net sales of $111 million, compared to $97.8 million for the second quarter of the year before.

Net sales for the first half of the company's fiscal year were $213 million, compared with $185.4 million for the same six-month period a year ago.

The company reported a net loss for the second quarter of nearly $12.9 million because of one-time merger-related expenses and other charges. Earnings after charges for the same period one year ago came to $4.7 million. Earnings before charges (including interest, taxes, depreciation, merger costs and other related expenses) increased to $15 million for the second quarter, or 13.5 percent of sales, compared to $12.1 million, or 12.4 percent of sales a year ago.

Earnings before charges for the first half of the fiscal year came to $27.9 million, compared with $22 million a year ago.

O'Sullivan is one of the country's largest manufacturers of ready-to-assemble furniture.

"Our third quarter sales last year were exceptionally strong. Therefore, while we expect continued growth for the rest of the fiscal year, it should be at a more moderate pace," said Richard Davidson, president and chief executive officer, in a press release.

The company also announced changes in senior management. Davidson was named president and chief executive officer.

Phillip Pacey was promoted to senior vice president and chief financial officer.

Thomas O'Sullivan Jr. was named senior vice president of sales.

Michael O'Sullivan was named senior vice president of marketing.

Former CEO Daniel O'Sullivan announced in a written statement that "while I will remain chairman of the board, I have set March 31 as my date of retirement." O'Sullivan had planned to retire earlier, but stayed on to ensure a smooth transition during the merger process.