BACK ABOVE BOARD

Lumber co. surges

Lumber Liquidators assured investors Thursday that it had enough cash to weather a downturn in sales — a decline sparked by a TV investigation into its Chinesemade laminate flooring.

After remaining silent for 10 days following the “60 Minutes” report on March 1, company executives on Thursday said sales would have to tumble 27 percent before the woodseller burned through its $20 million cash on hand and had to tap its revolving line of credit.

Since the report, samestore sales have dipped 12.7 percent, according to CEO Rob Lynch. The Chinasourced laminate flooring — which “60 Minutes” reported had higherthanallowed levels of formaldehyde — makes up between 11 per cent and 15 percent of total sales.

After Lumber Liquidators’ conference call, its shares soared, closing at $36.08, up 10.2 percent.

They had fallen about 60 percent because of the TV report.

Meanwhile, the company did not make any promises to pay customers to replace flooring should it be found to have toohigh levels of formaldehyde, a carcinogen.

There are no current federal limits on formaldehyde in flooring. California is the only state that limits the chemical — used in the glue that holds the composite underflooring together.

The laminate flooring was labeled as complying with limits set by the California Air Resources Board, or CARB — but wasn’t, according to the TV report.

The company said it will offer “an air quality testing program at no cost to the customer.” If the results are “unfavorable,” more tests will be done, and then the company will “consider” a floor reinstallation.

“It’s too little, too late,” said Matthew Preusch, a lawyer representing consumers who claim they’ve had such health problems as increased asthma attacks since installing their floors. Formaldehyde has been linked to exacerbation of asthma in sensitive individuals.

CARB doesn’t recommend air testing and acknowledges that properly testing the flooring for formaldehyde emissions is “difficult and expensive.”

Dallasbased flooring expert David Hill recommends consumers take a piece of the flooring to a statecertified inspector for the thorough, more costly test.

Kiarah Deshane, a 22yearold in Old Town, Me., plans to do just that.

She said her 4¹/₂yearold son’s asthma attacks have worsened since she installed Chinesemade “Nirvana French Oak” laminate in her home in November.

If the boards come back above CARB limits, she wants them removed and for the company to give her a refund.