Falcon slump cushioned by training tables, McDonald's.(Falcon Products Inc.)(Brief Article)

With competitors and major customers reporting double-digit sales declines, it would seem that commercial furniture maker Falcon Products Inc. should have nothing but bad news fonts shareholders when its fiscal year ends Oct. 31.

But the St. Louis-based company has come through the office furniture industry's worst year in recent history holding its own.

Bolstered by strong demand for its "data-enabled" training tables, Falcon's office, furniture sales are down between 3 percent and 4 percent for the year. That compares with the office furniture trade group's recent estimate of 16 percent decline in growth for the year.

The training tables, which are designed to accommodate power and data cabling, are sold to a broad spectrum of companies including Cisco Systems, General Motors and American Express.

Falcon's foodservice business, which covers both the large fast food chains and restaurants, is up substantially on the quick service side, despite that sector's tough times, said David Morley, Falcon's president and chief operating officer. A large remodeling contract from McDonald's to redesign its newly acquired Boston Market chain fueled sales, Morley said, as well as the rapid service and one-stop shopping offered by Falcon's design studio in Los Angeles.

"Turnkey service has been a big differentiation for us," Morley said, adding that Falcon could not have-taken on the Boston Market contract without that capability. Boston Market's contract was for about $10 million -- 200 units, at $50,000 a unit.

The hotel segment is another matter. Orders, which had been slowing prior to Sept. 11, virtually stopped in the week following the attacks. Business has picked up since, but "it's been spotty," Morley said. Sales are down about 12 percent. Spending by Marriott, Falcon's largest hospitality customer, is down more than that.