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Lay-Z-Boy To Eliminate 850 Jobs

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The Associated Press

The Tampa Tribune

Published: November 19, 2008

MONROE, Mich. - Lay-Z-Boy Inc. said Tuesday that it will lay off 850 workers as it reported a widening loss for its fiscal second quarter, hurt by a deteriorating economy and low customer confidence.

The furniture maker reported a net loss for the three months ended Oct. 25 of $53.7 million, or $1.04 a share, compared with a loss of $9.9 million, or 19 cents a share, in the year-ago period.

The company said it will cut 850 workers, or about 10 percent of its work force, and expects between 15 and 20 dealer-owned stores to close in the next 90 to 120 days.

Revenue fell to $331.9 million, down about 9 percent from $365.4 million last year but slightly above Wall Street expectations of $329.6 million.

"Over the course of the quarter, we experienced a progressive decline in sales trends, particularly in October, as sales deteriorated in conjunction with the turmoil in the global financial and credit markets," Kurt L. Darrow, the company's chief executive, said in a statement.

Darrow also said that in light of the poor economic environment the company was suspending its annual earnings guidance.

Lay-Z-Boy said the cuts will save it from $16 million to $20 million annually.

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