MAY 16 I STEINWAY I FINANCE
Sales Decline in Q1
Steinway Musical Instruments' sales totaled $76.8 million during the first quarter of this year compared to net sales of $78 million for the first quarter of 2012. The company reported net income of $2.7 million, or $0.21 per diluted share, for the 2013 period compared to $0.6 million, or $0.05 per diluted share, for the prior-year period.
First quarter revenue of piano operations totaled $45.4 million, a 2.9-percent increase over the prior-year quarter. A 13.5-percent increase in unit shipments of Steinway grand pianos in the Americas was offset by lower shipments in European and Asia-Pacific regions, resulting in a 4.5-percent decrease as compared to the year-ago period.
First quarter revenues for band instruments totaled $31.4 million, a decrease of 7.2 percent from 2012, due to lower overall shipments.
"Our first-quarter results demonstrate significant improvement in our profitability profile," said CEO Michael Sweeney. "Overall, our gross margin jumped 330 basis points while EPS rose fourfold. Our band division turned in an outstanding operating performance, with gross profit up more than 16 percent. While we posted a slight decrease in total revenue as compared to the prior-year period, we are confident that the robust U.S. piano sales we saw this quarter will continue and that our strong order position in Europe and Asia will contribute to solid results for the year overall."