MAY 11 I STEINWAY I FINANCIAL
Asian Market Boosts Steinway Revenue in Q1
Steinway recently reported the results of this year’s first quarter, which ended March 31. The company’s sales dropped 2 percent, and gross margins increased from 27 percent to 31 percent. Net income jumped 79 percent.
Pianos revenues increased due to strong sales in the Asian market, with sales up 5 percent and a gross margin increase from 31.6 percent to 32.8 percent. Despite these small gains, Steinway CEO Dana Messina said the piano business will remain soft going forward into 2010.
“We expect our piano business to remain challenging as consumer demand continues to be weak in most of our markets,” he said. “While we continue to gain market share, it has not been enough to offset anemic industry demand.”
Band Sales Drop
The band segment saw a 10-percent sales decline in the first quarter as customers delayed delivery schedules. Gross margins improved from 21 percent to 29 percent due to improved manufacturing efficiencies and reduced sales incentives.
“Our band division has seen a steady improvement in customer orders,” Messina said. “We expect revenue improvement during the next two quarters as deliveries accelerate.”