Welcome to JSA Consultancy Services

A business consultancy, based in London, England, John Sacks' JSA Consultancy Services provides expert, in-depth, information advice and guidance as to how to exploit successfully the office furniture and interiors markets in Europe, North America, Australasia and Japan.

Herman Miller Q4 Profit Tumbles

Wednesday 24 June 2009

Herman Miller Inc. (MLHR: News ), Wednesday said its profit for the fourth quarter slumped from a year ago, hurt by a huge drop in quarterly sales reflecting weaker demand, amid the economic downturn. Orders were down 34.9% for the quarter, while North American sales declined 35.1%. The furniture maker, separately, said it completed the acquisition of Nemschoff, while tendering an offer to retire up to $75 million aggregate principal amount of its outstanding 7.125% Notes due 2011. The company also amended its Unsecured Revolving Credit Facility.

For the fourth quarter, net earnings of Herman Miller plummeted to $7.2 million or $0.14 per share from $39.5 million or $0.71 per share in the corresponding quarter last year.

Quarterly results reflect restructuring charges of $4.6 million on actions taken to adjust cost structure to the current business climate. Excluding restructuring charges, adjusted earnings were equal to $0.20 per share, compared to $0.71 per share in the year-earlier quarter.

On average, four analysts polled by Thomson Reuters expected earnings of $0.18 per share for the quarter. Analysts\' estimate typically excludes one-time items.

The Zeeland, Michigan-based company\'s net sales for the quarter plunged 38.4% to $319.9 million from $519.1 million in the same quarter a year ago, coming in below Street estimates of $339.03 million.

Greg Bylsma, Chief Financial Officer said, \"Business levels this quarter reflect the economic slow down facing most industries today.\"

In the sequentially preceding third quarter, Herman Miller reported a slip to loss of $5.2 million or $0.10 per share, as sales declined 28.5% to $354.4 million from the comparable quarter last year.

Among others in the industry, HNI Corp. (HNI) in April slipped to a loss of $11.89 million or $0.27 per share in the first quarter, as sales witnessed a 28% decline to $405.67 million. Another peer, Steelcase Inc. (SCS) reported a break-even net income for the first quarter of fiscal 2010. Net income for the quarter was $22.1 million or $0.16 per share, while revenue declined 33.1% to $545.6 million from the same quarter a year ago.

Herman Miller\'s North American sales for the quarter under review declined 35.1% to $268.3 million in the prior year, while non-North American sales were $44.1 million, a 53.4% decline from a year ago. Sales were also impacted by the foreign currency translation, reducing sales by $9.5 million.

Orders for the quarter were $324.1 million, down 34.9% from a year ago, with North American orders declining 33.4% and non-North American orders dropping 45.4% over the prior year.

Subscribe to our News Page

Enter your email here and we will tell you when this page is updated.

 

 

moreLatest News

Wednesday 7 June 2017 HNI appoints Lorenger president, Office Furniture

MUSCATINE, Iowa - HNI Corp. has appointed Jeff Lorenger to president of its Office Furniture segmen

Monday 5 June 2017 Leeds Firm Helps Save Jobs at Office Furniture Maker

Restructuring specialists from Leeds have helped safeguard a future for a £6m-turnover Oxfordshire

Sunday 28 May 2017 Steelcase's new seating aims to make hospital rooms more comfortable

GRAND RAPIDS, MI -- Patients often want their family members in their hospital rooms. Research sh

Thursday 25 May 2017 Furniture-maker Knoll says its CFO is stepping down

Knoll Inc. said Thursday its chief financial officer is resigning next month to devote more time to

Contact Us

JSA Consultancy Services
4-5 Gray’s Inn Square, Gray’s Inn,
London, WC1R 5AH, England


+44 (0) 20 7670 1510