Ekornes Reports Overall Revenue Increase

Furniture World Magazine

Ekornes ASA, a Norwegian producer of residential seating, reports that gross operating revenues for 2008 rose 3.9 percent to NOK (Norwegian krone) 2,673.1 million, an increase of NOK 99.5 million over 2007. Operating revenues of $85.9 million in the U.S. and Canada were down 5.5 percent in 2008 compared with 2007. Operating profit of NOK 462.7 million compared with NOK 465.1 million in 2007, a reduction of 0.5 percent. Net profit totaled NOK 347.6 million, compared with NOK 310.0 million in 2007 resulting in earnings per share of NOK 9.44, compared with NOK 8.42 the previous year. “Ekornes is maintaining an extremely high level of marketing activity to counteract the weak market and we are continuing to build our presence in the U.S. market,” says Peter Bjerregaard, president of the American subsidiary of Ekornes Inc. “We are encouraged that the year has started off well with higher sales in January compared with last year.” Companywide orders received were NOK 2,569 million, a 2.1 percent decrease from last year. The order reserve totaled NOK 185 million, compared with NOK 289 million for 2007. Established in 1934 in Sunnmore, Norway, Ekornes is the largest furniture manufacturer in Scandinavia with brand names such as Ekornes, Stressless® and Svane®. Products include Stressless® recliners, sofas, loveseats and accessories; Ekornes Collection sofas; and Svane® mattresses. Known as the Innovators of Comfort™, the company’s Stressless® seating is endorsed by the American Chiropractic Association for proper head and lumbar support. The world-famous Stressless® recliner features a patented system that adjusts automatically, allowing body weight to determine the proper level of support. Products are designed and manufactured at seven factories in Norway and are sold in over 30 countries. The corporate offices and distribution center in New Jersey serve North America. For more information, visit www.ekornes.com.