EAST BOSTON, MASS. - Expect to see the price of resin furniture rise this year. Syratech Corp., which makes the Syroco line of injection molded outdoor furniture, has increased its prices and intensified cost-reduction efforts to offset higher raw materials prices, a top official said.
The announcement was contained in a report of Syratech's 1994 financial results.
Syratech reported a 9.5 percent sales increase in 1994, to $95.5 million, from its casual furniture operations, Syroco and Omni. Casual furniture accounts for about 40 percent of sales at the East Boston company. Syra-tech's biggest market, tabletop and giftware sales, grew by 19.6 percent, to $146.7 million.
Syroco injection molds its furniture from polypropylene. Omni, a unit Syratech acquired in 1994, extrudes PVC tubing to make chairs, which are reinforced with aluminum. Syratech also purchases silver for its line of silverware and giftware.
Raw materials hikes are making Leonard Florence, chairman and chief executive officer, cautious for 1995. Syratech has boosted its prices and cost-reduction measures as a result.
The caution comes after record sales and profit for the fourth quarter and the fiscal year, which ended Dec. 31.
Overall sales for the year increased 15.3 percent to $242.2 million. Syratech enjoyed a strong fourth quarter, as sales jumped 31.9 percent to $63.4 million.
Profit in 1994 hit $19.9 million, an 11.4 percent increase from $17.9 million in 1993. For the fourth quarter, profit increased 6.3 percent, to 4.7 million.