Source: WoodworkingNetwork
Wood flooring supplier Lumber Liquidators' stock fell 11% to $76.63 following reports of formaldehyde in its China-sourced engineered flooring. An analyst for SeekingAlpha.com said lab tests confirmed the high levels of formaldehyde.
The author of the report, Xuhua Xu, said a number of consumers posted comments online complaining of allergic reactions characteristic of formaldehyde exposure, following installation of Lumber Liquidators flooring in their home. Xuhua Xu suggested a relationship between Lumber Liquidators' $8 million acquisition of Sequoia Flooring in Shanghai, and the appearance of potentially non-CARB compliant engineered flooring in its U.S. supply chain.
The report first surfaced June 20, 2013, at SeekingAlpha.com, which included lab reports and shipping labels backing up the the alleged sales of hardwood flooring products that potentially contained illegal levels of formaldehyde, a known carcinogen. Lumber Liquidators' stock price dropped from the June 19, 2013 close of $86.03 to $82.16 on June 20, 2013 on unusually heavy trading volume.
On June 21, 2013, the company's stock price dropped further to close at $76.63, for a total two-day drop of approximately 11%. Last year, Lumber Liquidators' net sales rose 19.3% to $813.3 million; net income increased 79.2% to $47.1 million.
The report first surfaced June 20, 2013, at SeekingAlpha.com, which included lab reports and shipping labels backing up the the alleged sales of hardwood flooring products that potentially contained illegal levels of formaldehyde, a known carcinogen. Lumber Liquidators' stock price dropped from the June 19, 2013 close of $86.03 to $82.16 on June 20, 2013 on unusually heavy trading volume.
On June 21, 2013, the company's stock price dropped further to close at $76.63, for a total two-day drop of approximately 11%. Last year, Lumber Liquidators' net sales rose 19.3% to $813.3 million; net income increased 79.2% to $47.1 million.