UPDATE 1-La-Z-Boy posts surprise Q4 profit; shares rise

* Q4 adj. EPS $0.07 v est -$0.11

* Q4 sales fall 22.7 pct

* Says to remain focussed on paying down debt

* Shares up 32 pct

June 15 (Reuters) - Furniture maker and retailer La-Z-Boy Inc (LZB.N) posted a surprise fourth-quarter profit as better cost-controls offset a drop in sales, sending its shares soaring 32 percent after the bell.

La-Z-Boy shares were up $1.17 at $4.81 in trading after the bell. They closed at $3.64 Monday on the New York Stock Exchange.

The furniture maker said it was closing its plant in North Wilkesboro, North Carolina and consolidating its two manufacturing operations into one facility in Hudson, North Carolina. It expects to save about $5 million to $6 million annually.

The company, which expects business conditions to remain difficult throughout the year, said it remained focused on improving its liquidity by paying down debt. It had debt of $44 million at year-end.

For the fourth quarter ended April 25, net income was $5.3 million, or 10 cents a share.

According to Reuters Estimates, the company earned 7 cents a share, excluding items. On that basis, analysts on average were expecting a loss of 11 cents a share.

Sales fell 22.7 percent to $284.5 million. (Reporting by Mihir Dalal in Bangalore; Editing by Ratul Ray Chaudhuri)