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.

HNI 3rd qtr sales tumble 31.5%

Thursday 22 October 2009

HNI Corporation Wednesday announced sales of $454.0 million a decrease of $209.2 million or 31.5 percent from the prior year quarter. Net income fell to $17.6 million or $0.39 per diluted share for the third quarter ending October 3, 2009.
Included in third quarter results are charges related to the shutdown of three office furniture manufacturing plants and restructuring of hearth operations. Net income per diluted share for the quarter was $0.47 on a non-GAAP basis excluding restructuring and transition costs.

Third quarter sales for the office furniture segment decreased $180.7 million. The decrease was driven by substantial weakness in both the supplies-driven and contract channels.

Office furniture division operating profit decreased $1.4 million. Operating profit was negatively impacted by lower volume and increased restructuring and transition costs partially offset by price realization, lower input costs and cost control initiatives.

Gross margins were 2.8 percentage points higher due to increased price realization, lower material costs and cost reduction initiatives partially offset by lower volume.

Total selling and administrative expenses, including restructuring charges, decreased $56.7 million or 29.7% due to cost control actions, lower volume related costs and improved distribution efficiencies.

Third quarter sales for the hearth products segment decreased $28.4 million driven by significant declines in both the new construction and remodel-retrofit channels.

The corporation\'s third quarter results included $6.0 million of restructuring and transition costs of which $1.6 million were included in cost of sales. These included $4.1 million of costs associated with shutdown and consolidation of production of three office furniture manufacturing locations and $1.8 million related to restructuring of hearth operations net of a non-operating gain. Included in third quarter 2008 results were $1.5 million of restructuring charges.

Consolidated net sales for the first nine months of 2009 decreased $0.6 billion, or 32.5 percent, to $1.2 billion compared to $1.8 billion in the prior year period. Acquisitions added $10 million or 0.6 percentage points of sales. Gross margins increased to 33.9 percent compared to 33.6 percent last year. Operating income was $16.5 million compared to $69.1 million in the prior year period. Earnings per share decreased to $0.10 per diluted share compared to $0.83 per diluted share last year.

Cash flow from operations for the first nine months of 2009 was $135.9 million compared to $104.6 million in the same period last year. The increase was driven by strong working capital management offset partially by lower earnings. Capital expenditures were $10.9 million in 2009 compared to $54.6 million in 2008. The Corporation reduced total debt $119 million during the first nine months of 2009 using cash flow from operations and proceeds from the sale of long-term investments.

\"Our strong third quarter profitability demonstrates the power of our reset cost structure. Our members have done an outstanding job of attacking costs and increasing efficiency throughout the corporation. We increased profitability and generated almost twice as much operating cash flow during the quarter despite the challenging market and revenue down almost 32 percent,\" said Stan Askren, HNI Corporation Chairman, President and Chief Executive Officer.

\"We continue to face uncertain and challenging market conditions. Our third quarter results benefited from relatively strong seasonal office furniture demand, primarily driven by government and education customers. We expect seasonal demand to dissipate in the fourth quarter, resulting in revenue below third quarter levels. Seasonality aside, we believe demand has generally stabilized. We remain excited about the future given our ongoing cost reset actions and aggressive efforts to improve our competitive position,\" said Mr. Askren.

Subscribe to our News Page

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

 

 

moreLatest News

Friday 23 June 2017 Trump 'has spent $133,000 on White House furnishings in his first five months in office

President Donald Trump has spent more taxpayer funds on White House furnishings in the first five mo

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

Contact Us

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


+44 (0) 20 7670 1510