AUG. 6 I STEINWAY I FINANCIAL
Steinway Q2 Sales
Drop 27 Percent
Steinway Musical Instruments’ second quarter sales dropped 27 percent from the same period last year. During the period that ended June 30, gross margins decreased from 26 to 29 percent, and operating expenses were reduced by 22 percent.
“We planned our business carefully and are managing our operations around the world in a disciplined manner,” said Steinway CEO Dana Messina. “By executing on areas under our control, we have succeeded in dramatically reducing our cost structure. We continue to operate our factories at significantly reduced production levels to reflect the weak demand.”
Piano sales were down 26 percent with a gross margin decrease of 30 percent from 35 percent. Year-to-date piano sales were at $80 million, down 26 percent.
Band sales in the second quarter were at $30 million, down 28 percent. Gross margin decreased from 21 percent to 22 percent. Year-to-date band sales were reported down 26 percent with a gross margin decrease from 21 to 22 percent.