Kimball quarterly earnings climb

Saturday 4 February 2012

Kimball International improved its earnings last quarter even as its net sales dropped, the company reported Friday. The Jasper-based company reported net income of $3.2 million (9 cents per diluted share) for the quarter ending 31 December 2011, as compared to net income of $876,000 (2 cents per diluted share) during the same period a year earlier. Net sales totalled $296.9 million last quarter, down 4 percent from a year earlier. “We were pleased in the improvement in our second quarter results,” Board Chairman Douglas Habig told analysts during an earnings call. Kimball operates two business segments — furniture and electronics. The furniture segment includes the office and hospitality industries, while the electronics segment includes the medical, automotive, industrial control and public safety industries. The company’s office furniture segment, which operates at a higher gross profit percentage than its electronics segment, made up a higher percentage of sales as compared to a year ago. Last quarter the company’s net sales were evenly split between both segments. During the same period a year earlier, sales from electronics represented 58 percent of net sales as compared to 42 percent from furniture. In the electronics segment, Kimball’s net sales for the quarter totalled $148.1 million, down 18 percent as compared to the same period a year earlier. The company said the decline was because of the previously-announced expiration of a contract with medical customer Bayer AG. The loss of that contract accounted for a $36.6 million reduction in net sales during the quarter, management said. Kimball is working to replace those lost sales but has not yet found enough business to offset the Bayer loss, said Kimball Chief Financial Officer Bob Schneider. In the furniture segment sales rose 15 percent, to $148.8 million. Selling and administrative costs in this segment rose 4 percent because of increased spending on sales and marketing, higher labor costs and higher commissions related to the improved sales. Net income in the furniture segment stood at $3.4 million last quarter, up from $801,000 the previous year. Looking ahead, Habig said, Kimball sees a mixed picture for the overall economy. U.S. political squabbles and the European debt crisis are contributing to an air of instability, Habig said, and in China growth rates are slowing and costs are rising. But on the plus side, he said, the U.S. unemployment rate is down, employers are adding jobs and the manufacturing sector is strengthening.

Design PRIMA announces new exhibitors

Tuesday 10 January 2012

Design PRIMA, the only exhibition where serious contract culture meets the latest in creative design, has generated significant interest since the announcement of its return. With many brands recognising the importance and influence of Design PRIMA in the marketplace, we’re pleased to announce that some fantastic companies have now confirmed their attendance. Signed exhibitors include Atmosphere Contracts & Design, Bruynzeel, Edge Design, Kinnarps, Staverton, and Templestock. Graham Ross, Managing Director for Atmosphere Contracts & Design commented: "Being focused on the contract interiors market PRIMA offers the perfect platform for Atmosphere to showcase the latest innovation for our Omega range of executive office furniture. We will be launching the new product at PRIMA and introducing it to the architects, designers and specifiers that the show attracts, who are looking for new designs and innovations in this sector. We are looking forward to meeting old friends and seeing new faces at PRIMA 2012." Paul Edwards, Director of Staverton, adds: “Staverton is excited to launch its latest CL furniture range at Design Prima 2012. We believe this event is an excellent platform to introduce new innovations and engage with key industry professionals such as workspace designers and architects.” As well as impressing visitors with their unique and innovative products, exhibitors at Design PRIMA also have the opportunity to submit their latest and most innovative products for consideration for the newly launched Product Design Awards in association with leading architectural magazine Building Design. Design PRIMA will take place at the Business Design Centre, London from 29th February to 1st March 2012. For the first time Design PRIMA will be staged over the same period and at the same venue as The ARC Show, attracting even more design professionals to this exciting two day event.

Top Manufacturers and Distributors Confirm their Return to The Office Exhibition 2012

Wednesday 4 January 2012

The Office Exhibition 2012 to be held at the Dubai World Trade Centre from 15-17 May 2012 will see a return of some of the world's top designers of office furniture, organisers said today. The Middle East's leading and largest industry platform for office design and fit-out solutions has confirmed the participation of some of the most sought-after brands from Europe, America and the Far East. Responding to the increased demand from international and regional manufacturers, the 2012 exhibition will enjoy 30 per cent more floor space than the previous year. With 60 per cent of the show already sold, the event organisers say exhibitors are optimistic about the growth opportunities in the region's commercial fit-out market. "We're definitely seeing renewed confidence in the UAE market among exhibitors. Even though the local real estate sector has slowed, The Office Exhibition is very much viewed as the gateway through which to tap commercial fit-out projects across the region, particularly in the GCC," said David Wilson, Event Director of The Office Exhibition. Among the top brands returning to the show is Japanese manufacturer Okamura, widely celebrated for its game changing Contessa Chair - an elegant and ergonomically designed mesh chair with a synchro-reclining mechanism. It will be Okamura's first time exhibiting in the Middle East since 2007 and the manufacturer plans to demonstrate it has much more to offer than just seating. "Having the opportunity to exhibit to a wide range of architects, designers and end users all in one place makes the show the ideal platform to launch our new and existing ranges to a wider audience. Historically, Okamura has only displayed our seating ranges at such shows, but in 2012 we will be launching our new and exciting ranges for commercial and education environments. 2012 is going to be an interesting time for Okamura. Watch this space," said Patrick Taylor, Regional Brand Manager, Okamura. Following the success of the 2011 show, which attracted the largest contingent of North American manufacturers on record, the U.S. Campus will this year double in size. Over 30 brands are expected to be represented at the country pavilion. Scott Savage, Regional Director for Europe, the Middle East and Africa for HNI said, "Approximately 20 per cent of our projects in the region come directly from The Office Exhibition." European manufacturers are also eager to strengthen their foothold in the Middle East with The Office Exhibition 2012 already attracting leading designers such as Moving SRL and Quadrifoglio from Italy; Guialmi from Portugal; CP from Germany; and Burotime from Turkey. Fast earning a reputation as a truly international trade event, The Office Exhibition's show floor is split evenly between international and regional exhibitors. Distributors from the GCC, Lebanon, Turkey and Egypt are among the confirmed participants, including first-time exhibitors Noa Offices - representative of Interstuhl, Quinti and Dellarovere - and Humanspace - representative of flagship Dauphin among many others. "We are really pleased with the exhibitor response so far," said Wilson. "Some of the biggest names in office design have confirmed their return to The Office Exhibition 2012 and we have also experienced a significant increase in the number of first time exhibitors. We are looking forward to delivering a fantastic show in 2012."

Steelcase 3rd quarter sales up 10% and higher profits

Thursday 22 December 2011

Steelcase Inc. has reported third quarter sales of $719.4m ($672.6m in the same quarter last year) and net income of $22.4m. Excluding restructuring costs, adjusted earnings were $0.19 per share (last year $0.14) . Sales were higher than company forecasts and earnings per share were in line with expectations. Organic revenue growth in the third quarter was 10%, after adjusting for the net negative impact of $20 million associated with the deconsolidation of IDEO and other acquisitions and divestitures and approximately $4 million related to favourable currency conversion effects. The Americas posted 15% organic growth over prior year while EMEA experienced a 2% organic decline. Revenue growth in the Americas was broad-based and included a higher mix of revenue from some of the company's largest corporate customers, services and owned dealers. "The Americas segment posted another strong quarter with organic revenue growth of 15% and an adjusted operating margin of approximately 9%," said James P. Hackett, president and CEO. "Based on the strength of third quarter orders and the highest backlog in more than three years, we expect this momentum to continue in the fourth quarter." Current quarter operating income of $38.2m represents an improvement of $11.4m over the prior year. Excluding restructuring costs, third quarter adjusted operating income of $42.0 million improved $7.2 million compared to the prior year. The improvement was driven largely by organic revenue growth but impacted by the deconsolidation of IDEO and a higher mix of revenue from some of the company's largest corporate customers, services and owned dealers. The results also reflect higher spending on product development, sales and distribution strategies and other initiatives. Benefits from recent pricing adjustments exceeded higher commodity costs for the first time in six quarters.

New US legislation sets to limit sales of prison-made office furniture

Saturday 17 December 2011

Legislation was introduced this month to further limit the scope of office furniture and other products that can be sold by Unicor, a US government-owned corporation that employs federal prisoners. If passed, the bill would reduce the “unfair competition” with private sector firms when competing for government jobs. In addition, it would require Unicor to submit a detailed analysis of the impact of new products on the private sector. Also importantly, it also bars Unicor from selling its products commercially or internationally and prohibits the Unicor from contracts in which inmates would have access to classified or “sensitive” information. This is not the first time UNICOR has come under fire. Senator Carl Levin and former Representative Peter Hoekstra have also spearheaded legislation in the past on the Federal Prison Industries’ corporation UNICOR in an attempt to level the playing field with private industry. “This bill gives the taxpayer the greatest value for their hard-earned money by forcing federal agencies to bid for fair and reasonable prices and for product that best suit their needs,” Huizenga said in a statement. “The bill preserves market access for these products or services to the hard-working men and women of our districts. This is simply one more easy, common sense way to preserve jobs and help restore economic security for America.” Unicor competes with the private sector for jobs in seven business segments: office furniture, clothing and textiles, electronics, fleet management and vehicular components, industrial products, recycling and services, such as call centers. The company reported fiscal 2010 net sales of $776.98 million of which $129.31 million was from office furniture sales. The bill, which has been referred to the House Committee on the Judiciary, has received bipartisan support from legislators and a broad coalition of industry groups and companies, including the Business and Institutional Furniture Manufacturers Assn. (BIFMA), American Home Furnishings Alliance (AHFA), American Society of Interior Designers (ASID), National Association of Manufacturers (NAM), National Alliance for Fair Competition and Steelcase Inc. “We should be looking to make government more efficient and cost-effective, and this bill does that,” said co-sponsor Rep. James Sensenbrenner Jr. (R-WI) in a statement. “I support this legislation because it will save taxpayer money and open up the contracting process to competition by allowing businesses to bid for these contracts.

2012 Standstill forecast for US Office Furniture Industry

Friday 9 December 2011

Slow economic and job growth in the United States is expected to bring the office furniture industry's sales improvement of the past few quarters to a halt next year according to an updated outlook from the Business and Institutional Furniture Manufacturers Association (BIFMA). After the 14.6% growth in 2011 North American shipments up to $9.5 billion - less than earlier predicted - the industry will experience a slight dip in 2012. The outlook, prepared for BIFMA by IHS Global Insight and updated quarterly, now projects a 1.7 decline in industrywide shipments next year. The previous BIFMA outlook, issued in August, projected 17.6 percent shipment growth for 2011 and 7.5 percent in 2012. The updated outlook reflects the steady easing of shipment growth throughout 2012 and softness in key economic indicators for the industry such as hiring and new office construction, BIFMA Executive Director Tom Reardon said. As a result, "there's a lot of caution in the marketplace right now," Reardon said. The office furniture industry has recovered fairly well since mid-20120 from a harsh downturn brought on by the 2009 recession, posting 5.8 percent shipment growth in 2010 to $8.3 billion, with even larger quarterly gains late that year and early this year. The industry started 2011 with a 25.6 percent year-to-year increase for the first quarter and has since experienced a steady easing as the year progressed. Shipments for the second quarter grew 19.8 percent and 11.5 percent in the third quarter. IHS Global Insight projects shipment growth of 5.3 percent for the fourth quarter, Reardon said. Part of the slight percentage decline projected for 2012 stems from year-to-year comparisons to a time of solid growth, he said. "We're comparing to a year ago when we had some pretty decent numbers," Reardon said.

Casino employee denied workers compensation claim after falling out of office chair

Monday 28 November 2011

A casino worker injured when he fell out of his chair while trying to prop his feet on the desk has lost a round in his bid to collect worker's compensation insurance payments. The Nevada Supreme Court has ruled there was insufficient evidence for Gary Mogg, an "eye in the sky" at the Fitzgeralds Casino-Hotel, to qualify for industrial insurance payments. The court said a hearing officer abused its discretion in deciding that Mogg's "conduct was within the course and scope of his employment and that the injuries arose out of his employment." Mogg was a surveillance agent assigned to monitor 38 television screens to oversee the casino. While seated in the surveillance room at the casino, he started to put his legs on the corner of the desk to revive circulation. The chair tipped and he was thrown to the floor. He maintained the chair was defective. Due to the legal fight, he has been unable to receive any worker's compensation benefits since the accident in January 2008. Fitzgeralds carried its industrial insurance coverage through Cannon Cochran Management Services, Inc. The Supreme Court said it was unable to determine if there was any "implied prohibition" that barred the propping of feet on the desk. If there was an "implied prohibition," the court said "injuries did not arise out of his employment and they are not compensable." The court sent the case back to the office of hearing officers to determine if there was an increased risk by Mogg in putting his feet on the desk and if there was any written or implied prohibition against it.

Ahrend wins orders for three Dutch Ministries

Monday 14 November 2011

Ahrend has won four out of five tenders in the European tender procedure for office furniture for the new premises for the Dutch Ministries of Security and Justice and of the Interior and Kingdom Relations. In early 2013, these ministries will be housed in two towers, each over 140 metres high, in the Turfmarkt area of the Hague. The project by Prof. Hans Kollhoff Architekten is expected to be completed in December 2012; furnishing the offices will take place in the first quarter of 2013. The choice in Tender 3 (office chairs) was made for the new Ahrend 2020 by Paul Brooks. This fully recyclable chair has recently won a Cradle to Cradle certificate. And for Tender 4 (informal workstations) Ahrend offered the Ahrend 750 Lounge by designer Bas Pruijser (concept by Erik Veldhoen). Tender 5 (other furniture with a representative character), which includes representative furniture, can be implemented using Ahrend classics such as Mehes desks (designed by Friso Kramer) and Ahrend 350 chairs (Sigurd Rothe), which were awarded the prestigious ‘red dot: best of the best’ design award when they were first introduced. Peter-Paul Hendrikx, Managing Director of Ahrend Furnishing: “We are extremely proud and happy that Ahrend was chosen for the majority of the tenders. This choice by the Ministries of Security and Justice and of the Interior and Kingdom Relations once again underlines that sustainability pays off, and that sustainability in Ahrend's business management and the use of many Cradle to Cradle products combine perfectly with service provision, design and economic functionality.”

Raynor Group JV with Tempur and Staples

Friday 4 November 2011

Raynor, a seating manufacturer based in New York state, will be manufacturing a range of office seating using Tempur in the seat cushions to be sold in the US by Staples and through Staple's printed catalogue. "As a leader in the office seating industry we are constantly looking for innovative solutions to provide the utmost levels of quality and comfort to our customers, and we are thrilled to provide office workers with an even wider variety of options through this new line of Tempur office chairs," said Marc Fries, President of Raynor”.

Kimball International Results - Qtr to 30 September 2011

Wednesday 2 November 2011

Consolidated net sales in the first quarter of fiscal year 2012 decreased to $ 270,635 - down 8% from the prior year first quarter as an increase in net sales in the Furniture segment was more than offset by a decline in net sales in the Electronic Manufacturing Services (EMS) segment. Sequentially, consolidated net sales in the first quarter of fiscal year 2012 decreased 4% from the most recent fourth quarter as an increase in net sales in the Furniture segment was more than offset by a decline in net sales in the EMS segment. First quarter gross profit as a percent of net sales improved 1.4 percentage points from the prior year first quarter due to a shift in sales mix towards the Furniture segment which carries a higher gross profit percentage than the EMS segment. Other Income/Expense for the first quarter of fiscal year 2012 was expense of $1.2 million compared to income of $0.8 million in the prior year first quarter, with the variance primarily related to the loss on the revaluation of the SERP investment discussed above. James C. Thyen, Chief Executive Officer and President, stated, "The macro economic environment continues to reflect volatility and drive uncertainty as nations struggle with significant fiscal matters. The impact is reflected in all of our markets often disturbing business strategy, execution, and timing." Mr. Thyen continued, "Our Furniture segment had an encouraging start to the new fiscal year by returning to profitability in the first quarter after ending with a loss in the fourth quarter of last year. Sales in this segment were up 9% compared to last year. Furniture segment orders during the quarter increased 16% compared to last year. In the EMS segment, lower sales volumes resulted in inefficiencies during the quarter. As a result, we incurred a loss in this segment in the first quarter. The second quarter will see the completion of the European consolidation and the closing of the Wales facility. We will also complete the closing of the Fremont, California facility. Both will lessen the burden of excess capacity costs."

Inscape Corporation Announces Appointment of President & CEO

Thursday 13 October 2011

Inscape , the leading designer, manufacturer and marketer of office systems, storage and architectural wall solutions for commercial office environments, today announced the appointment of Rod Turgeon to the position of President and Chief Executive Officer effective November 1, 2011 In this capacity, Rod will be responsible for the strategic and operational leadership of Inscape. The Company believes that Rod’s background is well suited to develop and leverage Inscape's current suite of products and to work with Inscape's leadership team and selling partners to profitably grow the business. Rod comes to Inscape after more than twenty years of successful career with Xerox, where he held several positions including: Vice President of Xerox Global Services Canada, Senior Vice President of United States Solutions Group, Vice President of Strategy, Business Development and Marketing Xerox North America and most recently as Chief Operating Officer of the Operations unit of Xerox Developing Markets in the West Region. For the past three months Rod has been actively helping Inscape with its go to market strategy. "We are delighted and look forward to Rod joining and leading Inscape through a period of fundamental change for our business. He has worked closely with us in a consulting capacity and has developed an insightful understanding of our business. With his extensive sales and solutions oriented background, Rod is well equipped to enhance our market oriented strategies and deliver desired business results despite a challenging global environment" said Mr. Bhayana, on behalf of Inscape Board of Directors.

Monarch plans manufacturing unit in Hyderabad

Monday 10 October 2011

Modular office furniture and seating solutions provider Monarch Ergonomics, which imports furniture and supplies to domestic clients, is planning to set up a manufacturing unit near Hyderabad. The unit will be a joint venture between Monarch and its principal partner, Merryfair of Malaysia, which currently supplies the company with workstations and office furniture. Typically, it takes six weeks for the orders to be honoured due to the imports. Once the manufacturing unit is set up here, Monarch will be able to reduce the service time by two weeks, its managing director Kotesh Jagannathan told Financial Chronicle. “The manufacturing unit set up will be preceded with by launch of new range of products from Merryfair in the Indian markets,” he said. The manufacturing unit will also help the company bring down the prices, as it would save the existing 28 per cent import duty on products. Monarch is now serving the domestic markets with a huge inventory. “We can now deliver 1,000 workstations with chairs in four weeks,” he said, adding that the company now has a huge warehouse on the outskirts of Hyderabad. The Hyderabad-headquartered company also has operations in Ahmedabad, Bangalore, Chennai, Delhi, Kolkata, Kochi, Mumbai, Pune and Trivandrum and last year has clocked Rs 90 crore. “We anticipate Rs 250 crore revenues in three years on the back of new products and clients,” said Jagannathan, adding that the company has been growing around 40 per cent a year. Repeat sales also contribute significantly to growth as the average life of furniture is around seven years, he said. Monarch's customers include Axis Bank, ABN Amro, HSBC, Dr Reddy’s, ITC Park Sheraton, Vanenburg IT Park.

International furniture parts maker OMT Veyhl booming

Sunday 2 October 2011

The American venture of German office furniture partners OMT and Veyhl on Wednesday broke ground on a 61,000-square-foot addition to its 44,000-square-foot facility. The company has quickly outgrown the facility it built in the town in 2008. “We’ve basically doubled the company every year we’ve been here,” said Vice President Daniel Shaw. The company builds prototypes and special orders, and does custom manufacturing of “under the desktop” hardware — metal brackets, adjustable legs and rollers — for office furniture sold by major furniture brands, Shaw said. OMT Veyhl USA Corporation was created in 2005 and decided to locate to Holland because in the area’s workforce and its heavy concentration of the furniture industry, said company President Lars Reuter. Annual sales have jumped from about $3 million to $10 million since 2008, Reuter said. And the company’s sales for the financial year that started in July are significantly ahead of last year. The number of employees has increased from 33 to 72 over the last year. With the expansion, the payroll should increase to about 100 a year from now, Shaw said.

Herman Miller fighting to protect design rights in Australia

Sunday 25 September 2011

In what may become a test case for intellectual property rights, the American design company Herman Miller is taking an Australian supplier of replica furniture to the Australian Federal Court in a bid to stop it from using the famous Eames name. The Australian furniture supplier Matt Blatt, with shops in Sydney, Melbourne and Brisbane, sells replica designer furniture , generally at less than half the price of the real thing by legendary American designers, the late husband-and-wife Charles and Ray Eames. But the American manufacturer Herman Miller, the owner of the Eames trademark, has had enough and is hauling Matt Blatt to the Federal Court of Australia, claiming that the Australian company has infringed trademark, contravened the Trades Practices Act and Australian Consumer Law, and is ''passing off'' furniture products as authentic items by Herman Miller. The defiant owner of the Matt Blatt stores, 58-year-old Adam Drexler, is standing by his right to sell replicas of Eames and other designer furniture and intends to challenge Herman Miller. While some might accuse him of profiting from the creativity of others, Mr Drexler sees himself more as the Robin Hood of designer furniture. ''I believe that good design should not be something one should aspire to but be readily available to everyone - not just those in the top levels of income,'' Mr Drexler said. The Matt Blatt website refers, rather, to ''replica Eames'' products - and the courts have never determined whether the use of a trademark in this way is an infringement of intellectual property. Herman Miller's Federal Court claim against Matt Blatt could become the test case for this most thorny and heated of issues. The case's first hearing is scheduled for October 27.

Herman Miller 1st quarter sales up 20% at $458 million

Wednesday 21 September 2011

Herman Miller sales increased by more than 20 percent in the most recent quarter, continuing the strong momentum of the last year. The Zeeland-based Herman Miller yesterday reported sales of $458.1 million for the 1st quarter to 31 August compared to $380.7 million in the same period a year ago. Herman Miller reported quarterly net income of $24.6 million versus $16.1 million a year earlier. “We’re off to a great start to the fiscal year,” Chief Executive Officer Brian Walker said. “Despite ongoing volatility in the financial markets and a cautious pace in the broader economy, our business has shown remarkable resilience. Together with the many improvements we’ve made in the business over the past year, our performance this quarter gives us confidence that we are well positioned to face the opportunities and challenges ahead.” The strong quarterly results come as the office furniture industry continues to rebound from the recession. The latest outlook from BIFMA, the Business and Institutional Furniture Manufacturer’s Association says the office furniture industry projects North American shipment growth of 17.6 percent for all of 2011, to $9.8 billion. Shipments should grow another 7.5 percent in 2012 to $10.5 billion

Steelcase and UMCI form Philippines strategic partnership

Sunday 18 September 2011

Steelcase, the global leader in office furniture, and Ultra Modular Concepts, Inc. (UMCI) have formed a strategic partnership to offer a new dimension in office furnishings in the Philippines. The new partnership will see UMCI become the official distributor of Steelcase in the country, enabling Steelcase to further its goals of creating better work environments across the greater Asian region. The collaboration will dramatically expand Steelcase’s presence in the Philippines, working with an experienced and knowledgeable local operator with a long track record in the market, and expand the expertise and portfolio of products that UMCI offers its extensive client base. UMCI is an established office furniture marketer in the Philippines, meeting the needs of major local and international customers. It is part of Frigate Holdings that includes the Philippine distribution and dealerships for several premier lifestyle brands including Jaguar, Land Rover, Ferrari, Maserati, and Bose audio products among others. The new products will be officially launched in the Philippines this September in a joint event hosted by Uli Gwinner, President of Steelcase Asia Pacific; and Wellington Soong, founder and chairman of the Frigate Group. The occasion will also launch Steelcase’s new Manifesto and Lexicon furnishing system ranges, which are designed specifically for the younger generation of workers now entering the workforce in large numbers throughout Asia. Commenting on the new agreement, Uli Gwinner says: “The partnership with UMCI gives Steelcase the presence and support it needs to service its international and local customers in the Philippine market. With the driving force of its chairman, Wellington Soong, UMCI will enable us to fully meet the needs of our global clients in the Philippines, as well as extend our sales in a dynamic and growing market in which we have been under-represented. We anticipate solid growth for our key products, which apply our global knowledge and expertise to providing systems, services and solutions that meet the unique needs of workers and organizations in the Philippines, and throughout the region.” Wellington Soong adds: “We are proud to be appointed as the official distributor in the Philippines for the world’s leading office furniture brand. It positions UMCI to build on our 30 years of local market experience by applying the global knowledge and product range of the world leader in this field, in our country. We anticipate a strong response to our new portfolio of Steelcase products, which give us a superb balance of sophistication and value, together with the support of the world’s leading office furniture brand.” The first exciting step for the partnership was the launch event in Manila this September, when Uli Gwinner and Wellington Soong introduced Steelcase’s product portfolio to the Philippine market.

Steelcase Named Among Top US Technology Innovators

Tuesday 13 September 2011

Following the introduction of technological advances, including HD video conferencing, and the demands of constant connectivity in today's workplace, Steelcase has been included in this year's InformationWeek 500, an annual listing of the nation's most innovative users of business technology. "Our company is set apart from most because of our research abilities," said Robert Krestakos, CIO, Steelcase Inc. "It is our job as a company to understand the way people work, and the implication new devices and new technologies will have on organizations, and on work in general. We're able to take those rich insights and apply them to our IT, and product development, efforts." Based on its research, Steelcase saw an opportunity to invest time and resources toward the development of media:scape, a hybrid of innovative furniture design and workplace technology that provides seamless collaboration via videoconferencing. The company's IT team conducted extensive research into high definition video conferencing (HDVC) systems, which became the impetus for much of this product line that is now benefiting Steelcase employees and customers around the world. InformationWeek identifies and honors the nation's most innovative users of information technology with its annual 500 listing and also tracks the technology, strategies, investments and administrative practices of America's best-known companies.

Administrators hope to raise more than £1m from ROC Furniture asset sale

Sunday 11 September 2011

The administrators of Midlands office and contract furniture manufacturer ROC Furniture have sanctioned a £1m clearance sale of the company's stock and components. Online bidding for a host of residential and contract furniture stock and machinery closes on 14 September, after FRP Advisory commissioned specialist disposal experts Edward Symmons were instructed to realise the company's remaining assets. FRP was appointed administrator to the Birmingham based business in April after the company complained of suffering at the hands of public sector spending cuts.

Canadian manufacturer Inscape announces Q1 loss of $1.7M; sales up 7% to $19.3M

Wednesday 7 September 2011

Office systems provider Inscape Corp. announced today that significantly lower gross margins had led to a net loss of $1.7 million in its fiscal 2012 first quarter. The Ontario-based provider of office systems, storage and architectural wall solutions, said the loss in the three months ended July 31 amounted to 12 cents per share. That reversed a profit of $645,000 or four cents per share in the same 2011 period. Sales revenue was $19.3 million, up seven per cent from $18.1 million in the year-earlier period. "Our first quarter results highlight the significant business challenge facing Inscape," CEO Madan Bhayana said in a release. "Despite this improved sales level, we experienced a substantial loss of $1.7 million in the quarter. The loss is directly related to significantly lower gross margins; primarily due to lower realized exchange rates and partially due to lower realized net selling prices and an unfavourable product mix." Bhayana said the company must continue to grow our sales through the effective launch and sale of our new products.

Office Depot recalling 34,000 chairs that could pinch

Monday 22 August 2011

Office Depot is recalling 34,000 Chinese-made office chairs due to a pinch hazard involving the chair's tilt mechanism.The recall involves the Realspace PRO 3000 Series Custom Fit desk chairs produced by Huichang Furniture Co. Ltd. The chairs, which have a SKU number of 996-190, were sold at Office Depot stores and online from May 2009 to June 2011 for $170. Office Deport said that it has been alerted that one person was injured when his finger was caught in the tilt mechanism. The U.S. Consumer Product Safety Commission said consumers who purchased these chairs should stop using them immediately.

KI acquires Australian furniture maker

Friday 19 August 2011

Green Bay Wisconsin office furniture manufacturer KI said it has agreed buy Sebel Furniture Ltd. from GWA Group Ltd., an Australian supplier of building fixtures and fittings. Sebel makes educational furniture in Australia and has plants in New Zealand, the UK and Hong Kong. Financial terms of the agreement were not disclosed. Under the agreement, Sebel Furniture will operate as a standalone division of KI and maintain its portfolio of education furniture, which will be made - along with certain KI products - in its current markets and territories. "It's an acquisition that is consistent with KI's international growth strategy and supports KI's leadership positioning in the education market," said KI President Dick Resch in a statement announcing the agreement. The sale is expected to close by the end of September, KI said. KI makes furniture and wall system solutions for education, health care, government and corporate markets. The employee-owned company is headquartered in Green Bay, and has sales offices and manufacturing plants in the United States, Canada, Latin America, Europe and Asia.

Senator turnover down 6.3%; profits fall by 72%

Wednesday 10 August 2011

SENATOR International, one of the UK’s largest office furniture manufacturers, has revealed a sharp fall in profits. The Accrington-based company, which employs mote than 1,000 people, was hit by an exceptional item of £932,000 as a result of the relocation of Teal Furniture - a High Wycombe-based healthcare furniture firm it bought in 2008 - to the North West. Even without this hit, Senator's 2010 profits were down in what director Robert Mustoe - son of founder and chairman Colin - described as "another difficult trading year." Sales, impacted by the continuing weakness of the commercial property market fell 6.3% from £98.4m in 2009 to £92.2m. Operating profits fell from £2.4m to £1.9m, while pre-tax profits, including the one-off item, fell from £2m to £552,000. In his review of the year Robert Mustoe says the results were 'satisfactory' given the market conditions. While acknowledging the fall in sales he said a decline in the gross profit rate seen in 2009 had been reversed, and was 26.1% compared with 25.9%. Also on a positive note, he pointed to a strong second-half performance US-based subsidiary Senator Inc, which in the year grew sales to £6.6m. Mr Mustoe said the reorganisation within the healthcare division should lead to "significant" savings in the future. He said the group's financial position remains "exceptionally good" and pledged further investment in new products. "In the present economic climate the directors will continue to review the group's operations and cost base, whilst at the same time continuing to improve the product range, market share and profitability. "In particular it (the board) will continue its policy of investing for the future in product research and development in order to maintain its position as an innovator and independent UK supplier of office furniture and explore options to reduce manufacturing costs in order to maintain competitive prices and margins."

Kimball office furniture sales up 15% but profits fall last quarter

Thursday 4 August 2011

Kimball International saw its profits drop last quarter, with improvements in its furniture business but declines in its electronics segment. The company reported on Thursday that it had net income of $284,000 for the quarter ended June 30, down from $793,000 during the same quarter a year ago. Kimball's 2011 fiscal year also ended 30 June. For the year as a whole the company's earnings were $4.9 million, as compared to $10.8 million in 2010. In furniture, Kimball makes furnishings for the office and hospitality industries. Its electronic manufacturing services segment supplies a variety of industries, including automotive, medical and public safety. Last quarter Kimball's furniture segment posted a net loss of $906,000, compared to a $2 million net loss during the same period in 2010. Net furniture sales for the quarter were $119.7 million, up 15 percent from a year ago. "We did see significant improvement from the loss we experienced in 2010," Kimball President and Chief Executive Officer Jim Thyen said during a conference call with analysts. Kimball introduced new products in both its office and hospitality furniture lines, Thyen said, which helped boost sales. A continuing challenge for this sector, the company said, is that freight, fuel and commodity prices are going up. At the same time, Kimball said, it has felt the need to offer product discounts for competitive reasons.

Okamura and Nippon Steel combine to build new steel plant after earthquake

Monday 1 August 2011

Japan’s largest steelmaker, Nippon and Okamura Corp. will jointly invest 2.4 billion yen ($31 million) in a new plant to make steel office furniture after the March earthquake shut the venture’s current facility. NS Okamura KK, 46 percent owned by Okamura and 45 percent held by Tokyo-based Nippon, aims to start production at the new facility in May next year, the companies said in a statement today. The old plant will be closed permanently, they said. Output at the existing plant in Kamaishi was halted after the magnitude-9 earthquake hit northeastern Japan. Sales of steel furniture produced at the new facility, to be located about 1 kilometer (0.6 mile) west of the old plant, may reach 2.5 billion yen a year, Akio Migita, general manager of Nippon Steel’s flat-products sales division, said at a media briefing in Tokyo today. The venture had a loss of about 1 billion yen in the year ended 31 March after the earthquake, Teiichi Toshida, director of Yokohama-based Okamura, said at the briefing.

Short term looking good but longer term issues ahead according to latest JSA Forecasts

Thursday 21 July 2011

The UK office furniture market is about to enjoy an increase in sales revenue to the end of 2011 and into 2012 according to the latest Office Furniture Market Report from JSA Consultancy Services, but the longer term outlook is less easy to gauge with continued uncertainty in the wider economy. The new edition of the quarterly report, developed in partnership with the economist Roger Martin-Fagg, will come as good news for a sector that has been under pressure since the 2008 economic downturn. The current JSA Report forecasts growth in the short term, primarily because of price increases. In cash terms the market will grow each quarter but there will be little or no growth in output. This situation is usually described as ‘stagflation’. Beyond that the market will be more uncertain, not least because of a potential contraction in the wider economy. ‘The UK economy will shrink in Q2 and Q3, and there is a growing risk that Q4 could be negative’ explains John Sacks of JSA. ‘If this doesn’t happen, it will because UK wages grow by at least 5%, every debtor pays his bills within a month, UK finance directors sign off big capital spends financed from retained profits, and net trade with the rest of the world expands. The report expects Q4 results for the economy to show a 0.4% contraction.’ According to John Sacks the data in the report is more reliable than other surveys. ‘Traditional forecasting of this kind has relied too heavily on historic data’ he explains. ‘What the new service offers are forecasts based on a much wider and more sophisticated range of data, including trends in the wider economy and the developing nature of the market itself. By continually updating this information online we are able to offer a dynamic viewpoint on the market to help subscribers make sound, well-informed business decisions.’ More information on the JSA Market Forecast service is available at http://www.jsacs.com/uk-market-forecasts.php

Knoll Inc 2nd Qtr Results – Sales up 24%; Profit up 50%

Monday 18 July 2011

Knoll Inc.has reported a rise in profit for the second quarter, helped by a 24% sales growth on double digit sales increase across all product categories. Nonetheless, results for the quarter failed to impress investors, with Knoll shares losing about 2.5% in early afternoon trade on the NYSE. Knoll reported a second quarter profit of $13 million or $0.28 per share, up from $8.7 million or $0.19 per share a year earlier. Excluding items, adjusted earnings for the quarter were $0.28 per share, compared to $0.22 per share last year. Sales for the quarter were $238.7 million, an increase of 24.1 percent from $192.3 million last year. Wall Street analysts expected revenues of $238.13 million for the quarter. The company said sales increased double digits across all product categories with the largest gains from office systems.

No buyer for RK Furniture of York following brief spell in administration

Sunday 17 July 2011

Administrators have conceded defeat in their quest to find a buyer for RK Furniture and the company has ceased trading. FRP Advisory was appointed administrator of the £2.5m turnover office furniture specialist earlier this month. All 45 employees of the York based company have been made redundant. In a statement, joint administrator Philip Armstrong said the decline in public and consumer spending had caused the manufacturing and wholesale business to fail. He added: "We are now working to recover as much value as possible for creditors, by selling the company’s remaining assets." RK's business had dwindled in recent years. As recently as five years ago it was posting profits of £0.7m and employed 73 members of staff. Fiona Rae at FRP Advisory is handling queries regarding the company's assets.

Unipapel of Spain to buy Spicers; UK and Irish businesses being sold on to Better Capital.

Wednesday 6 July 2011

DS Smith, the paper packaging and office products supplier, has agreed to sell Spicers, Europe’s leading wholesaler of office stationery and equipment , to Unipapel, the Spanish paper group, for an enterprise value of £200m. After completion, Better Capital, the investment fund founded by maverick venture capitalist Jon Moulton, has agreed to pay £32m for Spicers’ UK and Irish arm, which accounts for about half of its turnover. Spicers claims to be the market leader in the UK, Ireland, France and Benelux and also has operations in Spain, Germany and Italy. In the year to 30 April, Spicers’ profits rose from £21m to £25m on unaltered sales of £715m – about one third of DS Smith’s turnover. In spite of improving margins at Spicers – from 2.9 per cent to 3.5 per cent – in the last financial year, Miles Roberts, DS Smith’s chief executive, has described it as “non-core” to the company’s focus. Spicers improved trading as its strong performance in Europe offset “more challenging trading conditions” in the UK business, which is set to be inherited by Mr Moulton’s vehicle. The headline value of the deal with Unipapel was more than the £150m price tag that analysts expected. Unipapel is to take over the gross assets of Spicers worth £235m and gross liabilities worth £126m. Mr Roberts estimated that DS Smith will make a £60m net profit on the disposal, which will go towards paying down group debt. Better Capital, which specialises in investing in companies that require restructuring, has recently purchased units of Connaught, the defunct support services company, out of administration and in April last year it also bought out Reader’s Digest for £13m after its collapse into administration. Mr Moulton left Alchemy Partners in 2009 and set up Better Capital after calling for the buy-out house he founded to be wound up after disagreements over strategy.

Office Furniture company charged with corporate manslaughter

Monday 4 July 2011

The CPS has announced that Lion Steel Ltd, a steel storage company based in Hyde, Manchester has become the second company to be charged with Corporate Manslaughter under the Corporate Manslaughter and Corporate Homicide Act 2007 (“the Corporate Manslaughter Act”). Lion Steel Ltd has been charged following the death of Stephen Berry. On 29 May 2008 he fell through a fragile roof panel at an industrial unit in Johnstonbrook Road, Hyde, sustaining injuries from which he later died. In addition to the corporate manslaughter charge the company is also charged under sections 2 and 33 of the Health and Safety at Work Act 1974 (“HSWA”) for failing to ensure the safety at work of its employees. Three company directors, Kevin Palliser, Richard Vaughan Williams, and Graham Coupe have also been charged under section 37 HSWA in that the HSWA offence committed by the company is said to have been committed with the consent or connivance of, or to have been attributable to neglect on the part of these directors. The accident occurred a month after the Corporate Manslaughter Act came into force. If convicted of corporate manslaughter the company faces an unlimited fine. The accident occurred before the Health and Safety (Offences) Act 2008 came into force meaning that the three company directors face a fine if convicted rather than a custodial sentence, which would have been the case had the offence occurred after January 2009 when this act came into force.

Herman Miller shares jump on strong 4Q report

Friday 24 June 2011

Shares of Herman Miller Inc. rose nearly 8 percent on Thursday after the office-furniture maker reported strong fourth-quarter results on rising orders. The company reported fourth-quarter net income increased four-fold as demand improved for its design-focused and ergonomic products. Revenue rose 37 percent to $441.5 million. Results handily topped analyst forecasts. Office furniture makers were particularly hard hit during the recession as businesses cut back on big-ticket items, but a turnaround is in the works. The quarter marks the fourth consecutive quarter that Herman Miller, based in Zeeland, Mich., has reported double-digit or higher earnings increases. Given the sizable fourth-quarter earnings beat, improving operating leverage, robust order growth, and the likelihood that fiscal first-quarter guidance will compare favorably with Street estimates, analysts expect Herman Miller shares to move higher in Thursday's early trading,. Herman Miller's stock price rose $2.01, or 8.4 percent, to $26.01 in midday trading. The stock has traded between $16.23 and $28.14 over the past 52 weeks.

Steelcase posts Q1 profit, reversing year-ago loss

Tuesday 21 June 2011

Office furniture manufacturer Steelcase Inc. said Wednesday it reversed its year-ago loss to turn a first-quarter profit as revenue grew 18 percent. Net income was $7.5 million, or 6 cents per share, compared with a loss of $11.1 million, or 8 cents per share a year ago. Excluding restructuring costs, the company said its net income was 10 cents a share in the latest quarter. Revenue rose to $639.4 million from $541.8 million led by a 39 percent increase in Europe, the Middle East and Africa. In the United States, Canada, and Latin America, the company saw a 23 percent increase. Analysts expected 5 cents per share on revenue of $589.3 million. Steelcase's shares rose 60 cents, or 5.7 percent, in aftermarket trading following the release of the earnings report. They had ended the regular session down 18 cents at $10.40 Orders grew by more than 25 percent in the first quarter from the same period a year earlier. The company said some of the gain may be attributed to customers placing orders prior to a May 16 previously announced price increase. The company expects second-quarter revenue in the range of $670 million to $695 million. Analysts were expecting $634.1 million. Steelcase said it expects to report earnings between 6 cents and 10 cents per share for the second quarter. The estimate includes restructuring costs of about 9 cents per share. The company also forecasts about $11 million of higher commodity costs compared to the prior year and $4 million of incremental interest expense associated with senior notes issued in February. Analysts expect adjusted earnings of 12 cents per share

Haworth and Poltrona Frau linkup announced

Thursday 16 June 2011

Poltrona Frau SpA (PFG), the Italian maker of Cappellini and Cassina furniture, expects revenue in North America to “increase significantly” this year following a distribution deal with office specialist Haworth Inc. Poltrona Frau agreed last month to sell its chairs and other products in the Holland, Michigan-based furniture retailer’s dealerships in the U.S. and Canada. The Italian company, which gets about 7 percent of sales in the Americas, said at the time the deal would generate at least $20 million of additional revenue in the next five years “Even before this agreement, our business in North America was up 25 percent this year,” Chief Executive Officer Dario Rinero said. “I expect this partnership will increase significantly this trend.” Revenue this year at the Turin-based maker of leather and ash wood desks has risen more than 40 percent in Asia and about 7 percent or 8 percent in Europe, the Middle East and Africa, its biggest region, Rinero said. Sales in France, Switzerland and the U.K. are showing “nice growth” while Italy “is up about 3 points,” he said. Poltrona Frau, which gets 98 percent of North American revenue from residential sales, tends to sell only to the executive floors of office buildings, Rinero said. By joining forces with closely held Haworth, whose movable walls, desks, filing systems, tables and lighting cater to the general workplace, Poltrona Frau can broaden its reach, he said. Haworth, meanwhile, will be able to extend its offer to lobbies, cafeterias and executive areas, CEO Franco Bianchi said. The companies may expand the deal to other countries and it could lead to “co-development and licensing” projects in the future, Bianchi said. “We are very optimistic about the opportunities that we will discover together,” he said, adding Haworth doesn’t plan to take a stake in Poltrona Frau. Haworth reported sales of $1.21 billion in 2010. The company, which has more than 600 dealers worldwide, is growing “in line“ with the U.S. furniture market, where sales are rising about 20 percent, Bianchi said.

Nowy Styl defer plans to build a 60 million-zloty ($22 million) production line

Tuesday 31 May 2011

Polish manufacturing growth unexpectedly slowed for a second month in May, increasing pressure on the central bank to leave interest rates unchanged this month. A composite index based on a survey of purchasing managers at more than 200 manufacturing companies dropped to 52.6 from 54.4 in April, HSBC Holdings Plc said today based on a survey by Markit Economics. The median estimate of 14 economists surveyed by Bloomberg was 54. A reading above 50 indicates expansion. “The pace of growth slowed markedly, with output, new orders and input buying all rising at weaker rates compared to April,” HSBC said in an e-mailed statement. “The slower rise in new orders resulted in a moderation of output growth in May.” Polish companies including furniture maker Nowy Styl Sp. Z o.o. has delayed expansion plans because of lower-than-expected demand. Some members of the central bank’s Monetary Policy Council have said “excessive” interest rate increases may choke off corporate investment and slow economic growth. Fixed investment rose an annual 6 percent in the first quarter, the Central Statistical Office said yesterday, missing the 10.8 percent median forecast in a Bloomberg survey of six economists. The economy expanded 4.4 percent from a year earlier in the first three months of the year, compared with 4.5 percent in the final quarter of 2010. That pace of economic growth is in line with central bank forecasts and gives “no additional argument for a rate increase,” Marcin Mrowiec, chief economist at Bank Pekao SA, said before the PMI survey was published. The zloty gained to 3.9516 against the euro by 9:22 a.m. today in Warsaw from 3.9489 yesterday. The PMI report may point to another month of slower industrial output growth after the indicator weakened to an annual 6.6 percent in April, the lowest since October 2009. “The decline primarily reflected weaker contributions from the output and new orders components and, to a lesser extent, stocks of purchases,” HSBC said. “The slower rise in new orders resulted in a moderation of output growth in May.” Nowy Styl halted plans to build a 60 million-zloty ($22 million) production line this year because of “poor market sentiment,” Chief Executive Officer Adam Krzanowski said at a news conference in late April.

Old management team buy Triumph out of Administration

Wednesday 18 May 2011

The Triumph Furniture Company, which has supplied office furniture in Merthyr Tydfil and Tredegar for 60 years, was bought out by the firm’s management team. Partners at FRP Advisory became joint administrators when Triumph went into administration on 11 March. The insolvency firm called the family-run business “a respected local brand”. The joint administrators – Nigel Hamilton-Smith, Geoff Rowley and Charles Turner – have been trading the business as a going-concern, while reviewing a number of expressions of interest from potential buyers. Commenting on the sale, Mr Hamilton-Smith said Triumph was “a respected brand and a key local business”. Although administrators were “delighted” with the strong level of interest, they added it was “crucial to identify a suitable buyer to safeguard the company’s future”. “Often the best offer in these cases comes from the incumbent management team – they see the greatest potential and value in the business and, where the financial challenges have been down to external forces, are best suited to take the company forward,” said Mr Hamilton-Smith. He added that the sale “not only protects the jobs of over 200 staff, it represents the best possible deal for creditors and retains the talent and experience of the management team.” Triumph chief executive Andrew Jackson said the new restructuring gave an opportunity to “provide continuity and reliability of supply and choice” in a challenging market. Mr Jackson added the company needed to “make sure we have the right product range at the right price for today’s business; and the opportunity to do what we’ve always done well: offer the trade new ideas which can bolster the work of all our dealers in difficult times”.

Enthusiatic office seating salesman

Sunday 8 May 2011

Boulder, Colorado police caught a man driving with an office chair embedded in bumper after a graduation party. While patrolling University Hill after the University of Colorado graduation Friday, Deputy Police Chief Greg Testa and Cmdr. Curtis Johnson spotted something unusual on a Toyota Avalon, according to a police report. A partially crushed office chair was embedded in the car's front bumper, according to the report. Testa and Johnson followed the Avalon as it turned north onto Ninth Street just after 2 a.m. Saturday and activated their lights. The driver - later identified by police as Samuel Robert Rolph, 23, of Golden - told the officers that he had "a few" alcoholic drinks at a graduation party, according to the report. The officers detected a strong alcoholic odor and reported that his speech was slurred and his eyes were glassy, bloodshot and watery. "Rolph appeared unaware there was a chair stuck in his bumper," officers reported. Rolph, who is not listed as a CU student, failed a roadside maneuvers test, and he blew a 0.21 breath-alcohol concentration when tested about one hour later, according to police.

Office furniture from scrap cars

Friday 29 April 2011

A design competition, held last week in South Africa during Green Office Week, saw students from Design Time, a design school based in Woodstock in Cape Town, produce office furniture made from used and discarded car parts. Europcar initiated this project to reinforce and highlight the need to adopt the three Rs - Reduce, Re-use and Recycle - to make work environments more environmentally friendly and sustainable. Forty-one first and second-year students were divided into 18 groups to use discarded car parts from the car rental's depot and its old billboard vinyl. The material included tyres, mirrors, seatbelts, exhaust pipes and car seats, amongst other things. The students were given six weeks to conceptualise and finalise their designs with the help of a mentor, Heath Nash. Nash is a designer/artist famous for making recycled products with a uniquely South African and environmentally conscious slant. His range called "Other People's Rubbish", which champions the process of recycling and innovative re-use, is made from used plastic bottles and galvanised wire. He was the Elle Decoration SA designer and lighting designer of the year in 2005/6, and also won the title of British Council South African Creative Entrepreneur of the Year in 2006. In 2010, Nash was awarded in an eco-lighting competition judged by Ingo Maurer at Finland's premiere interiors show Habitare. Three groups were chosen as the winners by a panel of judges including Nash and won cash prizes up to the value of R10 000. "The students' designs were incredible; they all produced unique and innovative pieces out of scrap. They definitely proved that we can reduce, re-use and recycle pretty much anything," says Zavi Stein, GM of marketing at Europcar.

HNI reports $1.8M loss in first quarter

Friday 22 April 2011

Office furniture maker HNI Corp. announced a net loss of $1.8 million for the first quarter on sales of $396.2 million. The Muscatine, Iowa, company released its earnings report Tuesday for the quarter ended 2 April. The report indicated sales were up $32.7 million, or 9 percent, over the same quarter last year when the company reported $363.5 million in sales. The net loss compared with a net loss a year ago of $4.1 million. Net loss per diluted share was 4 cents, or a net loss of 2 cents excluding restructuring charges. HNI Corp. said office furniture sales were up 10.4 percent in the quarter to $331.1 million. The hearth products division reported sales of $65 million, an increase of 2.4 percent.

58 competitors hurl down 600ft hill for Germany's 3rd annual office chair race

Tuesday 19 April 2011

A group of 58 men, who apparently like to make their office chairs aerodynamic, launched themselves headlong from a ramp onto a 600ft downhill course, as they took part in the 3rd annual German office chair championship on Saturday. Armed with helmets, elbow protectors and kneepads, the keen racers reached speeds of 22mph in the 200m race in the central town of Bad Konig, Hesse. Pierre Feller, from Luxembourg, took the title after completing the run in just 26.95 seconds. "His lying-down technique was sensational!" the Daily Mail quoted competition organiser Rene Karg as telling www.local.de. Strict rules are in place for competitors. They are allowed to fit inline skate wheels and handles to their chairs, but no motorised aids are permitted. Karg added: "We check each chair in advance." Second and third places were won by Andreas Ripper and Finn-Jan Rucktaschel. Heiko Winter won the best-designed chair. His effort was fitted with a horse's head and a saddle and he was dressed as a cowboy.

British office furniture firm chooses Pennsylvania site for US headquarters

Friday 15 April 2011

Impressed by the Hazleton area of Butler County in Pennsylvania, a British office furniture manufacturer has headquartered its United States office in the CAN DO Corporate Center in Butler Township, company officials announced Wednesday. ABF, a firm that designs and manufactures Kite Table brand office furniture, is expected to create new jobs in the area in the next two years. Colleen Reardon, marketing manager for Penn's Northeast, the marketing entity for economic development organizations in Northeastern Pennsylvania, recently assisted the firm in coming to the area. "The area is suitably located next to major highways, making access to major markets such as New York and Philadelphia a breeze," said ABF CEO and Managing Director Darren Buttle. "It also offers us a great workforce." "What I really liked is that people here were actually listening to what we needed and identifying properties that were suitable to our business," Buttle said. ABF's Kite Table line includes a unique portable folding table and stackable chair system that are portable, multifunctional and easily reconfigured. ABF exports to Canada, South America and the Caribbean from its Drums location and will be using U.S. suppliers for 85 percent of its product content. "These factors align perfectly with our company's goal of improving the way people meet, train and communicate around the world," Buttle said. Buttle was so impressed by Hazleton he lauded the area to businesspeople at a recent conference in the United Kingdom.

Knoll 1st quarter sales up 26%; profit quadruples

Thursday 14 April 2011

Office furniture manufacturer Knoll Inc.'s first-quarter net income increased more than four-fold as the improving US economy boosted demand for the company's modular office equipment. Knoll, based in East Greenville, Pa., said on Friday that business has been brisk enough to expand its backlog of outstanding orders by 24% compared with the same period a year earlier. Knoll's net income for the quarter that ended March 31 jumped to $9.2 million, or 20c per share, from $2.2 million, or 5c per share a year earlier. Knoll's sales rose 26%, to $220.9 million from $175.3 million in 2010's 1st quarter. The strongest sales growth came in office systems, the company said. Knoll designs and manufactures furniture, textiles and leather used in offices and homes. It offers modular office furniture with moveable components, power and data systems and lighting. Its customers include large companies, government agencies, schools, hospitals and hotels. Knoll shares leaped $2.05, or 10.5%, to close Friday at $21.63.

Bene announces preliminary results for year

Tuesday 5 April 2011

The Bene Group, a listed company on the Vienna Stock Exchange, announced today their initial assessments of the results of the financial year to 31 January 2011. Turnover fell by approximately 5% in the previous year (2009/10: EUR 179.3 million) and although turnover fell in the first half of the year by 19.5% to EUR 77.1 million (first half of 2009/10: EUR 95.8 million), it increased significantly in the second half outstripping the first half-year’s results by more than 10%. At the same time, Bene Group significantly increased the share of high-margin products in the annual turnover over the course of the year, thereby improving the gross margin, as well as saving additional targeted costs and increasing the organisation’s overall efficiency. Despite the lower sales figure for financial year 2010/11, the Austrian office furniture manufacturer anticipates a positive EBITDA that will far exceed comparable figures for the previous year (2009/10: EUR -5.2 million). According to preliminary figures, the Bene Group has also improved its EBIT, although this figure will still remain in the negative. This must be viewed in the context of the cyclical nature of the office furniture industry, which traditionally reacts with an approximately two-quarter delay to economic developments in the individual markets. Due to a clearly positive operative cash flow, the Bene Group expects to return to the path of growth over the course of the financial year. With the moderate improvement of the global economic climate in 2010, the Bene Group was able to introduce a positive trend in the quarterly results during the course of the 2010/11 financial year. Bene Group management therefore anticipates a bottoming out in the relevant markets and time-delayed positive effects on the business, leading them to expect significant improvement in turnover for financial year 2011/12.

Godrej sets up new $13m manufacturing facility in Pune, Mumbai

Tuesday 22 March 2011

Godrej Interio, home and office furniture manufacturer is setting up a new facility at Shirwal near Pune. The company is investing Rs 60 crore ($US 13m) for this new plant which will be fully operational by June 2012. The new factory will help the company to reduce burden from its Mumbai's manufacturing plant located at Vikroli. Along with furniture, it will manufacture pre-laminanted wooden boards and mattresses. Speaking about this, Mr Anil Mathur, COO Godrej Interio said, The facility will start its production in the first phase by November 2011 and it will be fully operation by June next year. We have already invested Rs 60 crore in this facility. The total investment in the furniture business in Rs 150 crore ($US 32.5m)." Godrej Interio offers customers office and domestic furniture, along with solutions for laboratories, hospitals and health care establishments, education and training institutes, shipyards and navy, auditoriums and stadiums. They are represented across India through 50 owned showrooms in 18 cities and 800 dealer outlets.

Wipro CCLG takes V3 engineers to court for design infringement

Thursday 17 March 2011

Indian office furniture manufacturers Wipro has taken V3 Engineers (P) Limited, a Bangalore based company engaged in manufacture of furniture to court for infringement of their registered designs. Wipro Limited yesterday filed a complaint in the court of City Civil and Sessions, against V3 alleging infringement of the registered designs comprising components and accessories of modular office furniture range marketed by WCCLG under the brand name I’M. In their complaint, Wipro has alleged that V3 had copied essential and stand out features of their furniture range to create similar looking furniture. After perusing the records and evidences submitted by Wipro Limited, Court has by way of ex-parte ad-interim injunction, prohibited V3 from manufacturing and/or selling furniture incorporating features registered by Wipro till further orders.

Inscape 3rd qtr sales to 31 January jump 32%

Friday 11 March 2011

Madan Bhayana, Chief Executive Officer of Inscape, manufacturer of office systems, storage and architectural wall solutions, announced results for the third quarter ended 31 January 2011. "Sales in the third quarter of fiscal 2011 were 31.7% ahead of the same quarter of last year." "Our top line sales growth far exceeds the general industry increase. Based on the existing back-log on hand, we expect that the sales for the fourth quarter of fiscal year 2011 to be lower than the third quarter of this year and materially higher than the fourth quarter of the prior year." Net income for the third quarter of fiscal year 2011 ending January 31, 2011 was $0.9 million, compared with a net income of $0.1 million in the same same quarter of last fiscal year. The improvement in the quarterly net income was attributable to a 31.7% growth in sales, which generated a 32.1% increase in gross margin. The current quarter's sales benefited from a U.S. currency hedge gain of $2.2 million, compared with a total hedge gain of $1.0 million in the same quarter of last year. Without the currency hedge gain, and with the average U.S. spot exchange rate near parity during the quarter, the three-month period would have a net loss of about $0.7 million. On a year-to-date basis, the nine-month period ending January 31, 2011 had a net income of $3.1 million, compared with a net loss of $1.3 million. The year on year sales were up 27.4%, while gross margin grew 47.0%. The year-to-date sales included a U.S. currency hedge gain of $5.4 million for fiscal 2011 and $1.4 million for fiscal 2010. The fiscal 2011 year-to-date results would have a net loss of about $0.8 million without the currency hedge gain. Sales in the third quarter of fiscal 2011 were $23.6 million, an increase of 31.7% from the $17.9 million in the same quarter of last year. The current quarter's sales included a U.S. currency hedge gain of $2.2 million, while the same quarter of last year had a hedge gain of $1.0 million. Sales in the year-to-date nine-month period rose 27.4% from last year's $52.1 million to the current year's $66.3 million. The sales results in the nine-month period included total hedge gains of $5.4 million versus a net hedge gain of $1.4 million in the prior year. For the nine-month period, the gross margin rate increased from last year's 26.3% to the current year's 30.3%. The year-over-year improvements in the gross margin rates were attributable to a favourable overhead absorption due to higher volumes, an increase in gains from the U.S. currency hedge contracts and continued manufacturing improvements, offset by lower realized selling prices.

Silverline announces sales boost from new London showroom

Thursday 10 March 2011

In the first two months of 2011, Silverline, the UK manufacturer of steel storage, nannounces that it’s new London showroom has generated nearly £500,000 of sales. The company has also secured a £2 million finance deal from GE Capital to support its ambitious expansion and restructuring plans. The state-of-the art showroom in the heart of Clerkenwell in London covers 3,000 sq feet over two floors and is designed to provide a first class environment for clients to view all the latest ranges. Adrian Cowley said: “The Clerkenwell showroom is attracting significant levels of new business from the local design community. All of Silverline’s latest ranges can be seen at the showroom including the environmental leader s:line and the new Freedom range.

Herman Miller & Steelcase amongst Fortune 500 Most Admired Companies

Monday 7 March 2011

Herman Miller was 2nd, Steelcase 8th and HNI (HON) 9th in the Home Equipment, Furnishings sector of the 2011 Fortune 500 Most Admired Companies. In 2010, Herman Miller were in 1st position in the sector but have relinqished this in 2011 to Whirlpool.

Eurotek business closed

Friday 4 March 2011

Up to 130 workers have lost their jobs following the collapse of Eurotek, a UK office furniture manufacturer. Which has been formally wound up. Administrators PricewaterhouseCoopers has confirmed that the Bognor-based firm is being shut down and its plant machinery assets are being sold off online. The company went into administration in January. The firm, which had major contracts with the Ministry of Defence and wide range of schools and universities, has been formally liquidated. A spokesman for the administrators said that despite efforts to keep the company afloat under the directorship of the administrators with half its 130 strong workforce, no buyer could be found. He said the company had suffered as a result of the ongoing economic challenges facing the public sector. This resulted in a sharp decrease in its sales which led to difficulties meeting debt payments.

JSA introduces dynamic new forecasting service

Wednesday 2 March 2011

JSA Consultancy Services, the UK’s leading provider of consultancy in the UK office furniture market, has announced a new subscription service offering information on current and future trends in the sector. The new service, developed in partnership with the economist Roger Martin-Fagg, will offer subscribers quarterly updates, including predictions of the future size of the market over a rolling period of three years. Announcing the full launch of the JSA Market Forecast, JSA Partner John Sacks said: ‘Traditional forecasting of this kind has relied too heavily on historic data. What the new service offers are forecasts based on a much wider and more sophisticated range of data, including trends in the wider economy and the developing nature of the market itself. By continually updating this information online we are able to offer a dynamic viewpoint on the market to help subscribers make sound, well-informed business decisions.’ More information on the JSA Market Forecast service is available at http://www.jsacs.com/uk-market-forecasts.php

Bisley and the Euro

Thursday 24 February 2011

According to today's Financial Times (London), recent currency movements have not helped all companies. Ralph Hearnshaw, international sales director at Bisley Office Furniture, the largest European manufacturer of steel storage for offices, has a problem as the company generally bills customers in euros. In 2008 and 2009, he says, Bisley benefited from the sterling devaluation and its market share expanded. But recent signs of strength in the euro are troubling because the company operates in a crowded field. “Every cent of change affects the bottom line because we can’t flex pricing,” Mr Hearnshaw says. “I don’t try to compete on high volume anyway – I would decline the work because we’re not in a low-cost economy. We’re a margin business.”

Herman Miller to invest $2.3m in health care products showroom

Thursday 17 February 2011

Office furniture manufacturer Herman Miller Inc. will be spending $2.3 million on renovations and new equipment at its Greenhouse facility in Holland, Michigan into a customer showroom for health care products. “The health care market is a new and growing segment of our business and the new showroom will bring all of our products into one showroom for customers,” Herman Miller representative Nancy Jagersaid on Thursday night. The renovation project received a recommendation for a 50 percent, 12-year tax break on the investment. Expected to be completed by late May, the showroom will not result in the addition of any new jobs.

HNI Corporation Announces Results For Fourth Quarter And Year-End

Wednesday 9 February 2011

HNI Corporation today announced sales up 14.9% from the same quarter last year to $466.1 million and profit from continuing operations of $12.6 million (2010 - Loss of $9.3m) for the fourth quarter ended 1 January 2011. For the financial year 2010, the Corporation reported sales of $1.7 billion and income from continuing operations of $29.7 million. Gross margins at 35.2% were 1.3 percentage points lower than prior year primarily due to reduced price realization, increased material costs and higher mix of lower margin products in the office furniture segment offset partially by higher volume and lower restructuring and transition charges. The Corporation recorded $7.1 million of restructuring and impairment charges and transition costs during the fourth quarter. These charges included $1.9 million related to costs associated with shutdown and consolidation of office furniture facilities of which $0.5 million were included in cost of sales. Askren, HNI Corporation Chairman said “We delivered strong performance across all of our businesses in the fourth quarter, led by double digit growth in our office furniture segment. The cost reset actions implemented in 2009 and 2010, combined with our strategic growth initiatives, resulted in an increase in earnings of more than 40 percent over prior year quarter.

Haworth reports higher sales of $1.21 billion for 2010

Wednesday 9 February 2011

Haworth Inc., riding a broader recovery in the office furniture industry, posted sales of $1.21 billion in 2010, a 9 percent increase over 2009. The Holland-based Haworth said today that the growth was driven by “strong results” in North America, Asia and emerging markets. Northern Europe also recorded “solid” growth. The annual sales growth exceeded 2010 results posted by many other top office furniture makers. “We had a very good year,” said President and CEO Franco Bianchi, who is “cautiously optimistic” for 2011. The family-owned Haworth, which employs about 3,000 people in West Michigan, benefited from an improving U.S. economy and a “unique strategic direction, which is resonating with our customers” and focuses on providing full interior spaces, from architectural components such as movable walls and raised floors, to furnishings and seating. “Despite the economic challenges of the past two years, we are cautiously optimistic moving forward and excited that our strategy will lead to continued success,” Bianchi said. “2011 will be a solid year and we are going to make it a great year. We have momentum.” The economy generated higher demand during 2010, particularly in the latter months of the year as corporations felt confident enough to begin moving forward on previously delayed projects, Bianchi said. Favorable lease rates nationwide resulting from the recession also enabled growing companies to take advantage of good deals for office space, he said. Haworth’s results for 2010 follow a 32 percent sales decline in 2009, to $1.11 billion, as the entire office furniture industry experienced a deep downturn amid the U.S. recession. Business began recovering in 2010 and accelerated toward year’s end.

UK Press lambasts spending watchdog for buying £900 office chairs with public cash

Tuesday 1 February 2011

Several British newspapers have attacked Britain's spending watchdog for spending £53,000 of taxpayers' money on office chairs including designer models costing nearly £900 each. According to the stories, Government Ministers accused the Audit Commission, an independent body set up to ensure money is spent legally and wisely, of going on a "shopping spree" while Britain was still suffering from the recession. Local government minister Grant Shapps attacked the quango for "forgetting that its job was to protect the public purse". In the last year it bought: * Four "modern and elegant, eye-catching" Kinnarps Omni Swivel chairs at £854 each. * Two Naughtone Hush chairs at £840 each which offer "sanctuary from the everyday hubbub". * Eleven Kinnarps Bone chairs at £562 each. In total, the commission bought 224 office chairs in total in the last 12 months, including 125 Godfrey Syrett "ergo plus high back asynchro" models at just over £200 each. The cheapest chair was £99. The Audit Commission has previously come under fire for its spending, including £40,000 on office pot plants. Shortly after the election, the Communities Secretary Eric Pickles rejected the Commission's request for a pay package of almost £240,000 for its new chief executive. In August the coalition government announced that the commission is to be abolished as part of its "bonfire of the quangos". Mr Shapps said: "It seems that whilst the country was in recession the Audit Commission went on a massive shopping spree buying designer chairs. "This kind of casual attitude to spending taxpayers' cash undermines faith in the public sector and is yet more evidence of how under Labour the Audit Commission forgot that its job was to protect the public purse." Conservative MP Aidan Burley added: "It is a shocking waste of money for a spending watchdog to have shelled out so much on designer chairs. "No wonder the state ran up such massive debts under Labour. This reinforces the case for scrapping this wasteful quango." But the commission said: "In 2009 the Audit Commission refurbished several of its offices to reduce our office space and save money. The chairs were an expense as part of a wider saving initiative and were intended to last for at least 10 years." The commission stressed it had not purchased any more chairs since its abolition was announced last year.

Senator International set to expand factory site

Wednesday 26 January 2011

UK office Furniture company Senator International is building an 80,000 square foot extension including a new warehouse, recycling facilities, workshops and canteen at their Altham Business Park, Accrington premises. Work should be completed at the plant by March after the firm won a £3.5million contract to provide seating to furnish a Saudi Arabian university. The extension, which will see the Whalley Road premises’ total area expand to 600,000 square feet, has the potential to create more jobs at the site. The expansion is expected to be completed in March and fitted out in early April. Chairman of the family firm Colin Mustoe said: “The extension is an addition we need to the factory quite quickly as space has become very tight, and we needed to urgently increase our capacity. “At this point it is a space concern and we haven’t planned to create more jobs, though there is now the potential for more jobs in the future.” At a time when other companies are cutting back, Mustoe said Senator was in a position to prepare for the future. He said: “Business is tough at the moment but we are moving forward. We have to plan for the long term not just the short term.” The firm which employs over 1,000 people is a major employer in the area.

Lamb Macintosh in liquidation

Thursday 20 January 2011

Liquidators have been appointed to Ken Lamb’s Slough-based Lamb Macintosh office furniture manufacturing business, founded in 1985.

Eurotek Office Furniture Limited – in administration

Friday 14 January 2011

Stuart Maddison and Karen Dukes of PwC were appointed joint administrators of Eurotek Office Furniture Limited on 13 January 2011. The company, based in Bognor Regis, is an office furniture manufacturer with clients in the private and public sector. The company has a turnover of £9.8m and employs 130 people Stuart Maddison, joint administrator and partner at PwC said: “The company has suffered as a result of the ongoing economic challenges facing the public sector which represented approximately half of its customer base. Due to a sharp decrease in sales, difficulties in meeting the company’s financial obligations, and having run out of alternative options, the directors of the company have placed it into administration. “In the short term, the administrators are continuing to trade the business as a going concern while a buyer is sought.”

General Motors Include Powermat Wireless Charging in New Cars

Friday 7 January 2011

One of the companies making a number of big announcements at this year’s Consumer Electronics Show in Las Vegas is the wireless charging firm Powermat who have their technology integrated into Teknion’s office furniture The next company they have hooked up with is General Motors, and Powermat’s wireless charging devices will be built into the full GM range starting off in the US in the middle of 2012. For European drivers this means that we can expect wireless charging in our new Vauxhalls, Saabs and Fords towards the end of 2012 at the earliest.

Reorganisation at Martela Corporation

Thursday 6 January 2011

Martela is to combine its design, product development, marketing, corporate responsibility and brand organisations and product management into a single Products & Communication (PCO) unit. Petteri Kolinen, Martela’s Design Director, has been appointed to head the new unit. This change takes effect immediately. The aim is to harmonise processes from management of product portfolio to product development, and from brand management to marketing. This also entails changes to the Group Management Team. Ilkka Koskimies, who has been in charge of marketing and product development at Martela and a member of the Group Management Team, becomes Marketing Director of the Business Unit Finland and will be a member of the unit’s Management Team.

Bene 3rd Qtr sales up 10%

Tuesday 21 December 2010

In the third quarter of 2010/11, for the first time since the beginning of 2010, the Bene Group reported a further small increase in sales and earnings. Despite the continuing weakness in demand in several markets, in the third quarter, the Bene Group increased sales by 10.2 % in comparison with the previous year (Q3 2009/10: EUR 39.2 million). In the first nine months, cumulative sales of EUR 120.3 million were down 10.9 % compared to the prior year’s reference value (Q1-Q3 2009/10: EUR 135.0 million). In Austria, in the first nine months of the business year 2010/11, sales increased by 2.1 % to EUR 40.8 million I Germany sales dropped by 18.5 % to EUR 30.9 million in comparison with the previous period . Sales in the UK continued to increase during the third quarter. After the first nine months of 2010/11, cumulative sales increased to EUR 13.8 million (Q1-Q3 2009/10: EUR 13.0 million), 6.0 % higher than the previous year. In Russia, sales reached EUR 11.0 million after nine months of the current reporting period. This corresponds to a decline of 45.4 % compared to the previous year’s reference value (Q1-Q3 2009/10: EUR 20.1 million). In the "other markets" segment, sales amounted to EUR 23.8 million and thus almost reached the previous year’s level (Q1-Q3 2009/10: EUR 24.0 million). Despite the ongoing difficult market environment, the Bene Group stabilised earnings in the third quarter of 2010/11 helped by the slight increase in sales as well as the reduction in people costs and non-personnel cost cutting measures.Other expenses decreased by 14.1 % to EUR 23.8 million (Q1-Q3 2009/10: EUR 27.7 million). In total, after the first nine months of the current reporting period 2010/11, the EBT of EUR -11.0 million remained at the previous year’s level (Q1-Q3 2009/10: EUR -10.9 million). Likewise, in the same period, the EBIT of EUR -8.7 million came close to the past year’s value (Q1-Q3 2009/10: EUR -8.8 million). The year-to-date financial result deteriorated from EUR -2.1 million in Q3 2009/10 to EUR -2.3 million due to increased interest charges from the corporate bond issued in April 2009. At the end of the third quarter of 2010/11, the equity ratio amounted to 26.5 % (January 31, 2010: 31.7 %); net gearing was 77.2 % (January 31, 2010: 24.6 %). In the first nine months of the current financial year 2010/11, additions to property, plant and equipment and to intangible assets decreased to EUR 4.3 million (Q1-Q3 2009/10: EUR 8.8 million) and thus remained clearly below the previous year’s level. Investments in replacements at the site in Waidhofen/Ybbs as well as investments in the new location in Vienna represented the largest positions. On the reporting date October 31, 2010, the Bene Group had 1,278 employees. (last year 1,295) . The Bene expected future projects “pipeline”,is increasing again, particularly in the Middle East, Asia, Western Europe (also in Germany) and several countries in Eastern Europe. This has already impacted on group sales, which rose by 8.6 % compared to the previous quarter of 2010/11. However, the Germany and Russia segments still recorded significant declines in sales and earnings. All segments, with the exception of Germany, improved the EBIT compared to the reference period. Despite the clear evidence of a slow recovery of the office furniture market, due to the time delay between receipt of order and invoicing of project business, the Management Board maintains its forecast that the Bene Group will report a clearly negative result for the current business year. In the medium-term, however, the Bene Group has a strong organic growth potential on the basis of the existing capacities and the extensive distribution network as well as the clear focus on direct sales. Bene having introduced profitable products to the sales organisation during the last years and having made essential investments in the capacity at the site in Waidhofen/Ybbs, the Bene Group should be able to realise a considerably higher increase in revenue and earnings compared to the industry in the event of a market recovery.

Herman Miller sees orders and sales rise

Wednesday 15 December 2010

Demand is up for Herman Miller’s products. And the company’s earnings per share are up as well. In its second quarter report issued on Wednesday, the office furniture maker reported second quarter orders of $461.8 million, an increase of 33.6 percent over the same quarter a year ago. During the same span, net sales of $412.2 million this year were up 19.9 percent compared to the previous year. And from the first quarter of this fiscal year, those numbers represent increases of 17.3 percent in orders and 8.3 percent in sales. “Our results this quarter reflect improved order entry across virtually every area of our business. This marks the third consecutive quarter of sequential and year-over-year order growth, and represents our highest level of orders in over two years,” CEO Brian Walker said in a company statement. “While the health of the general economy remains a concern, renewed vitality in customer demand is the headline for our business.” He credited expanded market reach and a “collaborative selling effort.” The quarterly report also announced earnings per share of 26 cents for the second quarter, compared to 17 cents in the same quarter of the previous year and 22 cents in the first quarter of this fiscal year. The company saw order growth in both its North American business segment (35.8 percent over the previous year) and its overseas segment (31.3 percent). “It’s been almost four years since we reported two consecutive quarters of double-digit percentage sales growth,” said CFO Greg Bylsma. And he pointed out sales in the quarter were outpaced by new orders, driving a $58 million increase in backlog over the August level. “In spite of a stubborn employment picture and a continued lag in non-residential construction, we’ve seen much improved customer demand over the past few quarters,” Walker said.

Inscape 2nd qtr sales up 49%

Friday 3 December 2010

Inscape reported that sales in the second quarter of fiscal 2011 were $25.1 million, an increase of 49.4% from the $16.8 million recorded in the same quarter of last year. Sales in the year-to-date six-month period rose 25.1% from last year's $34.2 million to the current year's $42.8 million. Despite a 6.3% decline in the average US dollar exchange rate over the six-month period, the losses in currency conversion were partially offset by the gains realised from currency hedge contracts. The sales in the second quarter of fiscal 2011 included hedge gains totalling $1.7 million, compared to the total hedge gains of $0.5 million in the same quarter of fiscal 2010. The sales results in the six-month period included total hedge gains of $3.3 million versus a net gain of $0.4 million in the prior year. The second quarter of fiscal year 2011 ended on October 31, 2010 had a net income of $1.6 million or 11 cents per share, compared with a net loss of $0.5 million or 3 cents per share in the same quarter of last fiscal year. The improvement in the quarterly net income was attributable to the 49.4% jump in sales from last year's $16.8 million to the current quarter's $25.1 million, which generated a 91.0% increase in gross margin from $4.1 million to $7.8 million. The current quarter's sales included a US currency hedge gain of $1.7 million while the sales for the same quarter of last year included a hedge gain of $0.5 million. Net income for the current quarter would be about $0.4 million without the currency hedge gain. "The second quarter of fiscal year 2011 was a success in terms of our financial results and the advancement of our strategic initiatives" announced Madan Bhayana, Chairman and CEO. "The significant increases in sales levels reflect the momentum Inscape is gaining in terms of customers recognizing the effectiveness of our flexible, creative product solutions. While the market overall rebounded to some extent, our outstanding results reflect a combination of substantial project volume from both existing accounts and a number of projects from new customers. "Financially, we are encouraged by the sales and profitability of the quarter. The sales gained 41.7% from the first quarter of fiscal 2011 and grew 49.4% from the same quarter of fiscal 2010. Despite the competitive pressure on realized selling prices, earnings per share were the highest since the final quarter of fiscal year 2008. This quarter's profitability reflected our improved operating efficiencies and the benefits of overhead absorption due to much higher sales levels. "While we are pleased with the interim financial results, I am mindful of the fact that the quarterly and year-to-date profits included a significant amount of gains from US currency hedge contracts, without which the second quarter would have a pre-tax income of about half a million while the year-to-date six month period would be breakeven. For the remainder of this fiscal year we maintain a strong cash flow hedge position; however, continued expectations for a strong Canadian dollar versus the US should be factored in when projecting our future sales and profitability results. "I am equally pleased with the substantial progress made towards implementing our strategic initiatives that were designed to ensure our solutions are considered more frequently by the Architect and Design influencers and end-user customers. We have added sales leadership and business development personnel in our key markets. Our organisation structure has been modified to ensure we have the greatest possible alignment of resources towards demonstrating the value of our solutions and the capabilities of our organization. "Based on existing back-log of large projects on hand, I expect that the sales for the third quarter of fiscal year 2011 to be slightly below the second quarter of this year and materially higher than the third quarter of the prior year." On a year-to-date basis, the six-month period ended on October 31, 2010 had a net income of $2.2 million or 15 cents per share, compared with a net loss of $1.4 million or 10 cents per share. The year-over- year sales were up 25.2% from $34.2 million to $42.8 million, while gross margin grew 56.2% from $8.5 million to $13.2 million. The year-to-date sales included a US currency hedge gain of $3.3 million for fiscal 2011 and $0.4 million for fiscal 2010. The current year-to-date results would be about breakeven without the currency hedge gain. At the end of the second quarter of fiscal year 2011, the Company had cash and cash equivalents of $4.6 million and liquid short-term investments of $14.7 million. On a constant dollar basis that eliminates the impacts of the U.S. dollar exchange rate fluctuations; year-over-year sales advanced 49.2% on a quarterly basis and increased 23.6% on a year-to-date basis. The increase sales can be attributed to an increased number of projects; as well as, some larger sized project. The Company expects that the US currency hedge gains and selling price pressure will continue to affect our reported sales for the rest of this fiscal year. Gross margin as a percentage of sales in the second quarter of fiscal year 2011 was 31.2%, compared to last year's 24.4%. For the six-month period, the gross margin rate also jumped from last year's 24.8% to the current year's 31.0%, a 6.2 percentage point improvement. The gains in the gross margin rates were attributable to the favorable overhead absorption due to much higher volumes and continued manufacturing improvements. The gains were partially eroded by lower realized selling prices.

Latest BIFMA forecast predicts better 4th quarter for 2010

Tuesday 30 November 2010

The office furniture industry, after a tough period that saw nearly one-third of its volume disappear during the recession, should finish 2010 on the upswing, according to an updated and upgraded outlook issued today. The Business and Institutional Furniture Manufacturer’s Association now projects North American shipments will grow 4.4 percent for the year to $8.2 billion. The industry will then see shipments increase a further 8.8 percent in 2011 to $8.9 billion, BIFMA project. The latest outlook represents a complete turnaround from earlier this year. The prior forecast, issued in August, predicted flat sales in 2010, followed by 6.7 percent growth in 2011. As recently as May, the industry was looking at a decline of about 5 percent for 2010. If the new quarterly outlook holds, the industry would grow this year for the first time since 2007, when shipments increased 5.5 percent. The deep economic recession that hit in late 2008 sent the industry into a tailspin, cutting shipments in 2009 by 29.7 percent, or $3.32 billion. Given all that’s occurring in the economy, BIFMA Executive Director Tom Reardon views the projection are both reasonable and sustainable. “It’s not a big bounce, but a healthy bounce,” Reardon said. The outlook reflects the slow, steady improvement in the U.S. economy, though the industry has a long ways to go to recover what it lost in the recession, he said. “That was a deep hole we fell into,” Reardon said. “It’s going to take some pretty big numbers to get back to where we were, and that’s going to take a while.” The updated outlook, prepared for BIFMA by Global Insight, comes as business for office furniture makers has steadily rebounded throughout 2010. The industry started 2010 with an 11 percent year-to-year decline in North American shipments for the first quarter. Business improved in the second quarter with a 3.6 percent increase in shipments and accelerated in the third quarter to an 11.7 percent increase over the same period in 2009. Fourth quarter shipment trends “mirror the third” and should produce “more of the same,” Reardon said.

Godrej Interio links up with Knoll International

Thursday 25 November 2010

Hard on the heels of announcing a strategic alliance with the Japanese manufacturer Itoki, Godrej Interio has announced the launch of an exclusive pan-India partnership with Knoll International, global leader in innovative modern design furniture and furnishings. This partnership is aimed at opening experience centres where architects, designers and consumers will have an opportunity to experience these modern designs and select the relevant products to create unique spaces. This arrangement combines Knoll’s heritage, and experience in design innovation and modern distribution dominance and scale of Godrej Interio, as India’s leading home and office furniture brand. Knoll brings to this partnership its skills and capabilities of creating a design language and experience which is unique and a platform of sharing the design languages and market learnings. Godrej Interio is set to open three flagship Knoll experience centres in Mumbai, Delhi and Bangalore in the next five years. This will be followed by a regional expansion, across India over the next few years. Godrej Interio will replicate the unique and experiential elements of Knoll’s famous flagship studios and will promise the ultimate premium experience for the discerning consumers. This will be seen with the combination of strengths that both partners bring to the country. Mr. Anil Mathur, COO, Godrej Interio commented, “Our alliance with Knoll heralds the beginning of a new era in the evolution of the Interior décor in India. By bringing Knoll’s world class designs to India, we would like to provide high quality and design products, to satisfy the imagination and aspiration of selective consumers. We are tremendously excited about this venture and our decision to partner with Knoll’s in India.” Mr. Andrew B. Cogan, CEO Knoll, Inc says: “We are enthused to partner with Godrej Interio to bring unparallel international designs to India. It’s going to be fantastic and exciting stage in our international development and we are sure that Indian consumers will love our contemporary designs which offer unmatched experience of comfort and distinction.”

Office Furniture executive charged with fraud scheme

Thursday 18 November 2010

An executive at a Lenoir furniture-manufacturing company is facing federal accusations that he created a dummy firm and billed his company for extra services concealed as processing fees, netting $563,000. Indictments made public Wednesday show Andrew Geiger was director of manufacturing for Bernhardt Furniture Company's Casegood-Bernhardt contract division from 1996 to 2008. Geiger had authority to negotiate contracts with third-party vendors, and in 1999 he made a deal with Viacraft Interiors Limited, a Canadian manufacturer, to produce office furniture. The products would be shipped to Bernhardt's facilities in Lenoir, and the company would pay Viacraft 34 percent of its list price. Prosecutors say in 2000 Geiger set up a fake corporation called Furniture Works International Inc., which was run by Geiger, his wife and father-in-law. They aren't named in court documents or charged. Once the company was in place, prosecutors say Geiger told Viacraft that FWI was a "value added reseller" and would be taking charge of repackaging, consolidating and shipping Viacraft's products for Bernhardt. To help handle the expense of FWI's fee - 6.75 percent of the list price - Geiger said Bernhardt would pay Viacraft an extra 5 percent of the list price. The indictment says Geiger then started sending Viacraft invoices, and caused Bernhardt to pay 39 percent to Viacraft instead of its agreed-upon 34 percent fee to cover Viacraft's extra costs. The furniture from Viacraft was shipped to a warehouse in Statesville that Geiger hired to make it appear FWI existed, and unloaded and repackaged by Bernhardt employees on company time. Geiger told them a variety of reasons why the furniture had to go to FWI, including that customs regulations prevented Viacraft from shipping it directly and that the Bernhardt facility was too busy to handle any shipments. "Any short-staffing at the Bernhardt factory was caused by Geiger stealing the labour of the Bernhardt employees," the indictment says. Those employees were then directed to take the furniture to Bernhardt's warehouse - its original intended destination. In 2006, the indictment says, Geiger told Viacraft to ship the furniture directly to Bernhardt, but kept collecting the payments, which were deposited into an FWI account at Wachovia. He faces charges of money laundering and wire fraud. Geiger couldn't be reached for comment on Thursday.

HAL and Ahrend

Wednesday 17 November 2010

Hal Holding NV, the investment firm owned by HAL Trust, said it bought an additional 19.8 percent- stake in Royal Ahrend NV, bringing its total holding to 99 percent.

US Office furniture demand is improving, analyst says

Friday 5 November 2010

By most measures, the office furniture sector is warming up, according to analyst Michael Dunlap. In his October survey, Dunlap said manufacturers' shipments jumped to 68.6, and backlogs were up to 62.4. Both employment and hours work also rose; 50 is mid-range, or "normal." Office furniture executives said their outlook is brighter, too, at a score of 57.2, the highest since October 2007. Overall the industry index hit 58.5 for the quarter, highest in more than three years. "The worst is clearly behind us, and we are finally seeing some solid signs of recovery," Dunlap said. "I think we will see this industry come out of this recession more rapidly than was previously predicted. However, it will be led by the health care and education markets, with the office market trailing well into 2011." The largest threats to the industry's recovery were in three familiar categories: the U.S. economy, rising health care costs, and competition from low-cost countries. Dunlap's quarterly survey goes to more than 600 leaders worldwide in office furniture manufacturing and supply chain. His next survey will be in January. "The improvements are almost across the board for office furniture manufacturers and suppliers," Dunlap said. "It appears that the supplier community is almost as optimistic as the OFMs."

HNI Corp. 3rd qtr sales up 3.5%

Thursday 4 November 2010

As a result of challenging market conditions and the Corporation's ongoing business simplification and cost reduction strategies, management made the decision in the first quarter of fiscal 2010 to close an office furniture manufacturing facility located in Salisbury, North Carolina and consolidate production into existing office furniture manufacturing facilities. In connection with the closure of the Salisbury facility and other office furniture plant closures announced in 2009, the Corporation recorded $0.6 million of charges during the quarter ended October 2, 2010 which included $0.9 million of accelerated depreciation recorded in cost of sales net of a $0.3 million reduction in restructuring expenses. The Corporation reduced a previously recorded accrual related to withdrawal liability associated with a multi-employer pension plan due to an increase in the market value of the plant assets. The Corporation had previously recorded $1.3 million of severance costs for approximately 125 members during the first quarter in connection with the closure of the Salisbury facility. The closure and consolidation of the Salisbury facility is expected to be substantially completed by the end of 2010. The Corporation anticipates additional restructuring and transition costs of approximately $1.2 million related to the various closures over the remainder of 2010. For the first nine months of 2010, consolidated net sales increased $2.8 million, or 0.2 percent, to $1.221 billion compared to $1.218 billion in the first nine months of 2009. Gross margins increased to 34.6 percent compared to 34.1 percent for the same period last year. Income from continuing operations was $17.1 million for the first nine months of 2010 compared to $7.7 million for the first nine months of 2009. Earnings per share from continuing operations increased to $0.37 per diluted share compared to $0.17 per diluted share for the same period last year. Third quarter 2010 sales for the office furniture segment increased 3.5 percent or $13.2 million to $387.4 million from $374.2 million for the same quarter last year driven by growth in the contract and international channels partially offset by a decline in the supplies driven channel. Operating profit prior to unallocated corporate expenses decreased $6.0 million to $34.0 million as a result of lower price realization, higher mix of lower margin products, increased input costs and investments in selling, marketing and product initiatives. These were partially offset by higher volume, improved distribution efficiencies, cost reduction initiatives and lower restructuring and transition costs. Third quarter 2010 included $0.7 million of restructuring and transition costs including accelerated depreciation compared to $4.2 million of restructuring and transition costs including accelerated depreciation in third quarter 2009. Net sales for the first nine months of 2010 increased 0.7 percent or $7.2 million to $1.03 billion compared to $1.02 billion for the same period in 2009. Operating profit increased 9.0 percent or $5.2 million to $63.0 million.

A successful Orgatec show

Wednesday 3 November 2010

ORGATEC came to a close on Saturday, 30th October 2010 with an extremely upbeat mood and very good results after five days in Cologne. The international fair for office and contract furniture was attended by around 61,000 visitors from 110 countries, who came to obtain a comprehensive overview of the trends and innovations in the global furnishing sector for offices and office facilities. A total of 608 companies from 41 countries presented their solutions in the Cologne trade fair halls. Sixty-one per cent of the suppliers and about 50 per cent of the visitors came to Cologne from outside Germany. “Top-ranking decision-makers from manufacturing and administrative sectors are increasingly using ORGATEC to prepare their investments in offices and office facilities,” says Oliver P. Kuhrt, Executive Vice President of Koelnmesse GmbH. “This, together with the event’s very international scope, made the trade fair a success for the entire sector. It clearly demonstrated that ORGATEC is the world’s leading trade fair for office and office facility furnishings.” Hendrik Hund, Chairman of the Association of Office, Seating and Office Facility Furniture (BSO), came to the following conclusion: “The trade fair has become more international. The customers particularly appreciated the high-quality solutions for smart office concepts involving workstations, conference rooms, communication centres and reception areas.”

Blackberry App for Orgatec 2010

Thursday 21 October 2010

For those of you with a Blackberry, the organisers of Orgatec, the bi-annual office furniture show in Koln, Germany, have created a free App with full details of the show and all related activities. Downloadable from http://www.orgatec.com/exhibitorsearch/meg_blackb.php

HNI (HON) 3rd quarter sales up 2.8%

Tuesday 19 October 2010

HNI Corporation announced today sales for the quarter to 30 September 2010 of $458.9 million and income from continuing operations of $15.6 million. Net income per diluted share from continuing operations for the quarter was $0.34 or $0.35. For the third quarter earnings per share was impacted $0.04 by a negative tax adjustment related to a valuation adjustment allowance. "Double-digit growth in the office furniture contract and international business drove a three percent increase in sales over third quarter 2009. We are encouraged by the success of our investments in selling, marketing and new product initiatives. Our hearth business was profitable for the quarter and is on track to be profitable for the year, despite challenging consumer demand. While weak small business confidence during the quarter impacted the supplies driven channel, I am confident our investments have positioned this business for future growth," said Stan Askren, HNI Corporation Chairman, President and Chief Executive Officer. Consolidated net sales for the first nine months of 2010 increased $2.8 million or 0.2 percent, to $1.221 billion compared to $1.218 billion in 2009. Gross margins increased to 34.6 percent compared to 34.1 percent last year. Income from continuing operations was $17.1 million compared to $7.7 million in 2009. Earnings per share from continuing operations increased to $0.37 per diluted share compared to $0.17 per diluted share last year. Cash flow from operations for the first nine months of 2010 was $49.1 million compared to $135.9 million last year. Capital expenditures were $18.7 million in 2010 compared to $10.9 million in 2009. The Corporation repurchased 654,664 shares of its common stock at a cost of $17.8 million during the first nine months of 2010. There is approximately $145.8 million remaining under the current repurchase authorization. HNI completed the sale of a small, non-core business in the office furniture segment during the third quarter. A pre-tax charge of $0.6 million was recorded at the time of sale. The corporation previously recorded $2.7 million of pre-tax charges during the first half of the year to reduce the assets held for sale to fair market value. In addition, the corporation sold a small, non-core component in the hearth products segment during the first quarter. Revenues and expenses associated with these business operations are shown as discontinued operations for all periods presented in the financial statements. Third quarter sales for the office furniture segment increased 3.5% to $387.4 million. The change was driven by an increase in contract and international channels offset by a decline in the supplies driven channel. Third quarter office furniture operating profit decreased 15% or $6.0 million. Operating profit was impacted by lower price realization, higher mix of lower margin products, increased fuel costs and investments in selling, marketing and product initiatives. These were partially offset by higher volume, improved distribution efficiencies, cost reduction initiatives and lower restructuring and transition costs. Third quarter sales for the hearth products segment decreased 0.8% or $0.5 million driven by a decline in the new construction channel partially offset by an increase in the remodel-retrofit channel. Third quarter operating profit increased 62.8% to $1.2 million. Operating profit was positively impacted by better price realization and lower restructuring costs partially offset by lower volume and higher material costs. "We remain optimistic about the office furniture market. We expect our investments in selling, marketing and product initiatives to drive improvements across the business. We see sales momentum continuing in our contract and international businesses and anticipate near-term growth in the hearth and supplies driven channels. I am confident our businesses are financially strong and strategically positioned for long term growth," said Mr. Askren.

30 jobs lost at office furniture company Samuel Bruce

Tuesday 5 October 2010

The company, based in Dundee has entered a process leading to liquidation, and arrangements have been made to auction its equipment. It was initially thought 50 jobs were affected by the company's demise but it has emerged that the actual figure was around 30. One ex-worker said it was "more like a family than a company," and the closure of the factory had left people fearing for their future. Samuel Bruce was founded in 1983 and specialised in designing and making office furniture, including desks, tables and storage units, and furniture for oil rigs and student accommodation such as bunk beds, wardrobes and lockers. Clients have ranged from a private school in Surrey to the London office of the National Bank of Dubai. As recently as February the company claimed its product list was going "from strength to strength." The Dundee operation included the factory, customer services, accounts and logistics. The London office included a showroom and had design, sales and marketing functions. It is not known how many jobs have been lost at the operations in the capital. One employee said "It will be very difficult for the workers to find jobs but there are a lot of good, experienced guys and girls who worked there and we are hoping everyone manages to find new employment." The man said staff knew there were problems but were still taken aback when the business shut its doors. He said, "The company has tried to soften the blow as much as it can. We knew the situation wasn't great and there had been difficulty with new orders, but the building closing still came as a surprise. "We were always hoping someone would take us over as we were a great, well respected company — but obviously that hasn't happened." "It's a sad indictment of the times that the company was left with no options but to close the doors. It had been extremely busy but it was orders going forward that was the problem." A wide range of the company's equipment — including machines, vehicles, office furniture and components — is due to be auctioned soon, with a viewing for potential buyers being held at the factory on October 20 and the bidding closing two days later.

BENE AG – Financial Results 1st half year - 2010/11

Sunday 26 September 2010

The continuing difficult economic environment in most of Bene’s markets had a negative impact on sales of the Bene Group in the first six months of the current business year. Accumulated sales of EUR 77.1 million in the first half-year of 2010/11 were 19.5 % lower than the previous year (1st HY 2009/10: EUR 95.8 million). However, in the second quarter of 2010/11, Bene achieved an increase in sales of 6.6 % compared to the first quarter of 2010/11. With a sales increase of 1.0 % to EUR 27.1 million (1st HY 2009/10: EUR 26.8 million), the Austrian market showed a slightly positive trend in the first six months of the financial year. In the first half-year of 2010/11, Germany recorded a decline in sales of 24.8 % to EUR 20.3 million (1st HY 2009/10: EUR 27.0 million). For the first time since the first quarter of 2009/10, the UK segment´s sales of EUR 5.8 million in the second quarter of 2010/11 were clearly higher than in prior quarters. In the first half-year of 2010/11, sales grew in total by 5.7 % to EUR 8.8 million (1st HY 2009/10: EUR 8.3 million). Despite the subdued investment climate, for the first time since the second quarter of 2009/10, with sales of EUR 5.0 million in the second quarter of 2010/11, the Bene Group improved sales in Russia and clearly exceeded the reference values of the previous quarters. In total, sales of the first half-year of 2010/11 in the amount of EUR 7.8 million were 54.9 % lower than the previous year´s value (1st HY 2009/10: EUR 17.2 million). As already in previous quarters, the "other markets" segment showed a very heterogeneous development in the first six months of the current financial year. Whereas markets such as Middle East, Hungary, Czechia, Ukraine and Switzerland remained below the sales of the reference period of the past year, the Bene Group realised significantly higher sales than in the first half-year of 2009/10 in markets such as Asia, India, Ireland, France, Belgium or Poland. In total, the "other markets" sales dropped by 19.7 % to EUR 13.2 million (1st HY 2009/10: EUR 16.4 million).

Godrej Interio offers date with Bollywood Stars

Monday 20 September 2010

Office furniture manufacturer, Godrej Interio of Vikrioli near Mumbai in India today announced its association with upcoming Bollywood release Anjana Anjani. Customers who purchase Godrej Interio products by 24 September, 2010 will stand a chance to meet Bollywood actors Ranbir Kapoor and Priyanka Chopra, who star in the movie, by filling in a form. Godrej says 30 customers stand a chance to win, by availing the offer anywhere in India, barring Tamil Nadu. Godrej Interio is the business unit of Godrej & Boyce Mfg. Co. Ltd, part of the Godrej Group, and has 50 exclusive showrooms in 18 cities and 800 dealer outlets across India. It offers customers home and office furniture, along with solutions for laboratories, hospitals and healthcare establishments, education and training institutes, shipyards and the Indian Navy, auditoriums and stadiums.

Steelcase Named Corporate Climate Responsibility Leader

Wednesday 15 September 2010

Steelcase Inc , a global leader in the office furniture industry today announced that Climate Counts, a New Hampshire based non-profit dedicated to fighting global warming, ranked the company first in its industry for combating climate change. Climate Counts uses a 0-to-100 point scale and twenty-two separate criteria to score and rank companies to determine how their corporate climate responsibility compares to sector competitors. The scorecard measures a company's efforts to assess their own climate footprint, reduce their emissions, support (or block) progress on major climate legislation, and publicly disclose their actions clearly to consumers. In the most recent scorecard, Climate Counts evaluated 47 companies in the pharmaceutical, home and office furnishing, toys and children's equipment and large appliance sectors. Rankings of companies in 12 other sectors will be released in November. The scorecard, developed along with oversight from a panel of business and climate experts, helps identify the innovative leaders dedicated to tackling global warming. "At Steelcase we are constantly mining for new ideas that will help us reduce our impact on the environment. We celebrate this ranking because it's a signal that we are continuing our forward progress -- one person, one idea at a time. It's an achievement but also a reminder that our work in this area will never be complete -- and we look forward to continuing our journey," said Angela Nahikian, director, Global Environmental Sustainability, Steelcase Inc. Since 2006, Steelcase has reduced its greenhouse gas emissions by 37%. One way the company has achieved this is by utilizing an energy purchase strategy with a significant commitment to renewable technologies that do not produced greenhouse gases. One example of this is the company's investment in a wind energy farm in Panhandle, Texas. In 2009, Steelcase became the first renewable energy buyer to sponsor an industrial-scale wind farm in the United States. The project capacity represents 20% of its US electricity usage and more than 17% of its global fossil fuel-generated electricity usage. It will prevent more than 61 million pounds of carbon dioxide being emitted into the atmosphere each year. As the sole sponsor of this farm, Steelcase is the largest investor in wind power in the furniture industry. Additionally, in June Steelcase began shipping products with EcoCradle(TM) packaging, a bio-based material made from agricultural byproducts developed by Ecovative -- a natural composite materials company. Composed of materials such as cotton seed hulls and mushroom roots, EcoCradle requires very little energy to produce since the material is grown, not manufactured. The entire process uses approximately 10 times less energy per unit to create than synthetic foams. Moreover, the material actually contributes to the environment with its ability to compost and add nutrients to the soil in just 30 days. Steelcase began using this solution with its Currency(TM) ready to assemble product, and is exploring future opportunities across its product portfolios.

UK Govt mulls office furniture sale amid 100,000 ideas to cut debt

Friday 10 September 2010

LONDON — The government said Friday it would try auctioning off old office furniture to save money as it implements the first of 100,000 suggestions from the public on how to slash the deficit. A challenge issued two months ago for people to give their own proposals on how to cut the 154.7-billion-pound debt appears to have unleashed Britons' inner Scrooge. Suggestions range from making it easier to sack civil servants to printing in black and white, cutting back rubbish collection to once a fortnight and charging people one pound to listen to live music in parks. "No one idea will solve the problems we face, but taken together they can make a real contribution to reducing the deficit and rebalancing the country's economy at a crucial time," said Chancellor of the Exchequer George Osborne. One of the first ideas to be adopted seeks to improve the way government departments deal with surplus and second-hand equipment and furniture, and proposes the creation of an online auction site. "Over 100,000 suggestions have been put to us and now we're starting to put some of them into practice," Osborne said. More than 60,000 of the suggestions come from public sector employees, and officials said they would all be individually considered. However, Brian Strutton, national secretary of the GMB union, dismissed the initiative, saying: "Asking the public for ideas to save money is a political gimmick intended to give the impression of support for the cuts."

Updated office furniture outlook predicts slow recovery

Tuesday 24 August 2010

The office furniture industry should see modest growth for the rest of 2010, resulting in flat sales for the entire year, followed by solid growth in 2011, according to an updated outlook. Overall, the industry still faces a slow recovery from a severe 2009 downturn that pushed shipments down nearly 30 percent to their lowest level since 1992. The updated outlook from the Grand Rapids-based BIFMA - Business and Institutional Furniture Manufacturer’s Association - in an upgrade from three months earlier, predicts a 0.5 percent decline in North American shipments for all of 2010, to $7.8 billion. BIFMA’s previous outlook in May forecast a 5.1 percent decline for 2010. A better-than-expected second quarter, coupled with predicted 2 percent growth for the third and fourth quarters, led to the upgrade in the outlook for 2010, BIFMA Executive Director Tom Reardon said. Second-quarter shipments, after declining 11% in the first quarter, grew 3.6% from April to June. The spring also saw a 13% increase in second-quarter orders over depressed rates of 2009, which should provide a solid base for increased shipments in the third quarter. Inconsistency returned to incoming order rates during the summer, as uncertainty about the U.S. economy set in, Reardon said. “All in all, we seem to be in the doldrums. Nobody knows what the economy is going to do,” he said. Barring a double-dip recession, the new BIFMA outlook shows the industry should “continue to recover very slowly,” Reardon said. BIFMA’s updated outlook, prepared by Global Insight, predicts a 6.7 percent increase in shipments for 2011, to $8.33 billion. In West Michigan, Steelcase Inc. and Herman Miller Inc. both report their latest sales and earnings in September. Brokerage analysts expect Grand Rapids-based Steelcase [NYSE: SCS] to report flat sales of $576.1 million and net income of 4 cents per share, followed by a 1.9 percent sales increase in the subsequent quarter, according to average estimates from Thomson Financial. Average estimates have Zeeland-based Herman Miller [Nasdaq: MLHR] reporting a quarterly sales increase of 12.5 percent to $364.6 million and a 7.4 percent increase in the following quarter.

Desk-Link’s future in doubt

Wednesday 18 August 2010

DESPITE dedicated service from its staff, the future of an office furniture company in Wales, UK remains uncertain after it ceased trading. Desk-Link is understood to have made 19 staff redundant and left more than 100 in limbo. Blaenau Gwent AM Trish Law has requested an investigation into the situation at the Tafarnaubach factory after it emerged the Assembly Government assisted the company with £250,000 of Single Investment Fund support to safeguard 90 jobs in December 2009. Although approached for comment Desk-Link have yet to confirm any details and workers have yet to receive a statement from the company. David Harris, 40, from Beaufort, has worked at the factory for the past five years and said the workers were hoping even if it took new investors, the company would once again be able to open its doors and get back to supplying a packed order book. “We were working overtime, weekends, doubles, just to make orders. The quality is still there. The customers we get are regularly coming back,” he said. “They have been messed about over time with delays and the like, but they still keep coming back, because of the quality of the work. “It would be a real shame if it does shut, not just for us but for the whole area. There were plenty of promises, but it seems those promises haven’t been upheld. “Everyone is more than a bit cheesed off with the way this has been run, but you won’t find a more loyal labour force than this one, fighting to keep the place alive. We want this place to stay open.” Blaenau Gwent MP Nick Smith said he had also been in contact with staff concerned about the jobs. “This is bad news for the staff who have worked hard to help try to keep this business afloat in recent times,” he said. “I have spoken to staff privately who have come to me with their concerns and visited the factory. “It is a good site and the staff are proud of their quality products. Let’s hope the insolvency team can find someone who can build up the business.” Desk-Link Office Furniture was saved from closure at the start of 2009 after going into administration late in 2008.

Kimball International, Inc. Reports Fourth Quarter and Fiscal Year 2010 Results

Thursday 5 August 2010

Kimball International, Inc. today reported net sales of $290.6 million and net income of $0.8 million, or $0.02 per Class B diluted share, for the fourth quarter of fiscal year 2010 which ended June 30, 2010. Net sales in the fourth quarter of fiscal year 2010 in the Furniture segment declined 13% when compared with the prior year fourth quarter. The Company's sales mix shifted in the current fiscal year as the Electronic Manufacturing Services segment represented 64% of consolidated net sales in the fourth quarter of fiscal year 2010 compared to 56% in the same quarter of the prior year. Sequentially, consolidated net sales in the fourth quarter of fiscal year 2010 increased 3% over the most recent third quarter as a 13% increase in net sales in the Furniture segment was partially offset by a 2% reduction in net sales in the EMS segment. Fourth quarter gross profit as a percent of net sales declined in comparison to the prior year primarily due to the sales mix shift toward the EMS segment which operates at a lower gross profit percentage than the Furniture segment. At the segment level, gross profit as a percent of net sales improved in the EMS segment while gross profit as a percent of net sales declined in the Furniture segment. Consolidated fourth quarter selling and administrative expenses declined 5% compared to the prior year primarily due to the impact of the normal revaluation to fair value of the Company's Supplemental Employee Retirement Plan (SERP) liability which has an exactly offsetting impact in Other Income/Expense where the SERP investment revaluation is recorded. In addition, higher advertising and product marketing costs and increased costs due to the reinstatement of the Company's retirement plan contribution for fiscal year 2010 were offset by lower labor costs and lower bad debt expense. Other Income/Expense for the fourth quarter of fiscal year 2010 was expense of $0.2 million compared to income of $3.4 million in the prior year fourth quarter. The reduction in income from the prior year was primarily related to the SERP revaluation and lower gains on the sale of investments. Fiscal year 2010 annual consolidated net sales of $1.1 billion decreased 7% from fiscal year 2009 net sales of $1.2 billion. Net income for fiscal year 2010 was $10.8 million. James C. Thyen, Chief Executive Officer and President, stated, "The overall furniture market has been much slower to recover and remains depressed. While sales were down in this segment for our fourth quarter compared to the prior year, fourth quarter sales increased 13% compared to the most recent third quarter on higher sales of office furniture product. This was our first sequential quarter-over-quarter sales increase in six quarters. We are expecting to see signs of optimism in a furniture market recovery approaching late calendar year 2011 as significant economic challenges remain as barriers."

Ahrend acquires Samas Benelux business

Tuesday 3 August 2010

Ahrend of the Netherlands has taken over the business and assets of Aspa and its affiliated company Assenburg. Both companies had since May 2009 belonged to Andreas Kantoor, which had continued the Benelux activities of the former Samas affiliate since July 2009 under the name of Aspa. Financial difficulties forced the Dutch Samas Group to sell all its operating affiliated companies last year.

Aurora Group in Taiwan to Establish 1,000 Sales Outlets in China

Wednesday 28 July 2010

The Aurora Group, Taiwan`s leading manufacturer of office furniture and equipment, which has 264 direct sales outlets in China, expects to raise that number to 300 by the end of this year, which ultimately will soar to 1,000. Y. P. Lin, the CEO, indicated that the market in China has been growing rapidly over the past decade to fuel continual interest in the market there. Lin disclosed that Aurora established an electronics plant in Shanghai in 1995, turning out mainly calculators and paper shredders, later expanding into production of office furniture and office automation equipment. It has 174 outlets in eastern China, mostly in the coastal area, 40 in the north and 50 in the south, mainly in Guangzhou, Guangdong Province. To raise profile among Chinese consumers, Aurora spent about 100 million renminbi on a pavilion-one of only five such pavilions at the Shanghai Expo, running from May to October. Lin said that the annual market value of office furniture in China is estimated at 100 billion RMB, and Aurora focuses on the mid- and top-tier segments that account for about 10 billion RMB or one-tenth of the entire market. Aurora is a top-10 OA furniture brand in China, where it generated 43% of group revenues last year, and the figure is expected to jump to 50% this year.

Boss Design goes for growth

Monday 19 July 2010

Contract seating supplier Boss Design of Dudley, UK, has announced a successful start to the year with sales up by 35% in the first quarter of 2010.

Aaron’s Inc closing office-furniture unit

Wednesday 30 June 2010

Aaron's Inc. will shut down its Aaron's Office Furniture division, including a store in Charlotte, and take a $9.5 million hit to its pre-tax earnings. The Atlanta-based furniture, electronics and appliance rentals retailer said it closed all but four of its Aaron's Office Furniture stores during the second quarter and now plans to have them all shut down by Sept. 30. Those final four locations include an operation at 4744 South Blvd. The others are in Atlanta, Dallas/Fort Worth and Hialeah, Fla. In 2009, the unit generated $16.5 million in revenue with a pre-tax loss of $7.8 million. For the first quarter of 2010, revenue was $3.9 million, and the pre-tax loss was $1.4 million. Second-quarter revenue is expected to be lower, with comparable losses, the company says. Aaron's will take $9.5 million in charges related to closure of the office-furniture unit. That includes the write-down and cost to dispose of office furniture, estimated future lease liabilities for closed stores, the write-off of leaseholds, severance pay, and other associated costs of closing the stores and winding down the division. "When we sold our legacy residential rent-to-rent business in 2008, we decided to keep the 13 Aaron's Office Furniture stores," Robert Loudermilk Jr., president and chief executive of Aaron's, says in a statement. "At the time, we believed there were still opportunities in the leasing and selling of office furniture. However, the office furniture business is highly cyclical, and with the economic conditions of the last several years, the stores have experienced declining revenue and have not been profitable. With no growth or profitability in sight, rather than spending more effort attempting to build this business and incur additional losses, we concluded we should exit the office furniture market and concentrate our future efforts on our sales and lease ownership stores." Atlanta-based Aaron’s also has trimmed its earnings guidance for the second quarter to a range of 29 cents to 33 cents per share from the previous guidance of 37 cents to 41 cents per share, and for the year to $1.36 to $1.48 per share from the previous guidance of $1.48 to $1.60 per share. "Our Aaron's Sales & Lease Ownership business continues to grow and gain customers, but we believe many customers are cautious as the current economic conditions are having an effect of them," Loudermilk says. "Traffic in the stores has remained good and we still look forward to having an outstanding year."

Bene 1st quarter sales decline and losses

Sunday 27 June 2010

Office furniture manufacturer Bene, which last year lost � 17.2 million, announced its 1st quarter’s results to 30 April 2010. Sales fell by 21.6 percent to � 37.2 million - the lowest quarterly sales since going public three and a half years ago. Growth of 8.4% in the domestic Austrian market failed to offset the weakness in other major markets - Germany (down 36.2 percent) and the UK (minus 43 percent ) and Russia (down 46.6 percent ). The drop in sales is reflected in earnings . EBITDA moved from a plus of 1.2m Euros to a minus 0.9 million Euros. The financial result deteriorated from minus �0.5 to minus 0.8 million . The company's net loss increased from 1.9 to � 3.92 million . Employee numbers fell by 292 employees (19.1 percent) and investments reduced by 3.7m Euros to 1.4 million.

Strong 4th quarter orders to help Herman Miller

Wednesday 23 June 2010

Analysts say strong orders in the fourth quarter bode well for Herman Miller Inc. this year, even as the maker of office furniture's recent results missed estimates. After the market closed, the company said its fiscal fourth-quarter net income fell by more 70 percent, missing analyst estimates. But the company reported that the pace of new orders is increasing and reached its highest level in 19 months, rising 12.5 percent to $364.5 million. The Zeeland-based office furniture maker earned $2.1 million for the last three months, down from 7.2 million for the same quarter last year. Sales were nearly even at $321.5 million, but orders rose 12 and a half percent, giving CEO Brian Walker hope that “we’re turning the corner in an economy that still faces challenging questions.”

Steelcase Reports First Quarter Results

Sunday 20 June 2010

Steelcase Inc today reported a first quarter net loss of $(11.1) million, or $(0.08) per share, including an $(11.4) million charge resulting from the recently enacted healthcare reform legislation specifically related to the Medicare Part D Subsidy. Steelcase reported break-even net income in the first quarter of the prior year. First quarter revenue of $541.8 million, in comparison to prior year, was negatively impacted by $(14) million from the deconsolidation of dealers completed in the last twelve months and positively impacted by approximately $6 million of favourable currency translation effects. Adjusted for these impacts, the company experienced organic revenue growth of one percent over the prior year. "After six straight quarters of year-over-year revenue declines during this current industry downturn, we are pleased with the organic revenue growth in the first quarter," said James P. Hackett, president and CEO. "Even though the growth was modest, our operating results improved significantly as a result of our cost reduction efforts over the past two years." The current quarter operating loss of $(1.4) million represents an improvement of $3.8 million over the prior year operating loss of $(5.2) million which included $16.8 million of income associated with an increase in cash surrender value of variable life company-owned life insurance policies (variable life COLI income). Current quarter results include $(2.5) million of restructuring costs compared to $(2.8) million of restructuring costs in the prior year. Adjusted for these items, first quarter adjusted operating income of $1.1 million improved $20.3 million compared to the prior year adjusted operating loss of $(19.2) million. "The $20 million year-over-year improvement in adjusted operating income is a reflection of our commitment to reduce our cost structure in response to current volume levels," said David C. Sylvester, vice president and CFO. "As the recovery begins to take shape, we remain committed to cost containment efforts in order to allow for maximum leverage from volume growth." Cost of sales improved to 69.9 percent of sales in the quarter from 70.9 percent in the prior year, primarily due to benefits from restructuring activities and other cost reduction efforts and lower commodity costs, and despite lower variable life COLI income in the current quarter. Operating expenses in the first quarter, which included the reinstatement of salaries to fiscal 2009 levels, were $161.9 million compared with $161.0 million in the prior year. Benefits from prior restructuring activities and other cost reduction efforts and the effect of dealer deconsolidations offset lower variable life COLI income and the reinstatement of salaries. The income tax expense recorded in the quarter included an $11.4 million charge resulting from the recently enacted healthcare reform legislation specifically related to the Medicare Part D Subsidy. Other income, net increased $4.5 million over the prior year to $1.8 million, driven largely by $4.0 million of variable life COLI income, which is now recorded as a non-operating item given the designation of these assets as an additional source of corporate liquidity. Cash, short-term investments and the cash surrender value of variable life company-owned life insurance totaled $243.8 million and total debt was $298.7 million at end of the first quarter. Outlook All reporting segments experienced year-over-year order growth during the first quarter. The company expects second quarter fiscal 2011 revenue to be in the range of $560 to $585 million. This estimate includes an assumption of approximately $(14) million from unfavorable currency translation effects. The company reported revenue of $578.1 million in the second quarter of fiscal 2010, which included $13 million of revenue from dealers which have since been deconsolidated. Adjusting for these impacts, the company projects organic revenue growth in the range of 2 to 6 percent over the prior year. Steelcase expects to report net income of $0.01 to $0.05 per share for the second quarter of fiscal 2011, including approximately $(4) million of pre-tax restructuring costs. This compares to break-even earnings per share in the second quarter of fiscal 2010, which included $(17.4) million of pre-tax restructuring costs and significant variable life COLI income. "We stayed focused on our long-term strategy during the industry downturn," said James P. Hackett, president and CEO. "Now, with positive momentum from the first quarter and the expected organic growth in the second quarter, we continue to believe we could achieve modest organic revenue growth in fiscal 2011 over last year."

Steelcase Receives Five Best of NeoCon Awards at NeoCon 2010

Monday 14 June 2010

The Steelcase family of companies won five Best of NeoCon Awards, including a Gold, two Silver and two Innovation Awards. Products recognized with a Best of NeoCon award include selections from Workplace Technologies, Furniture Systems, Education Solutions, Files & Storage and Occasional Table categories, all of which weree on display at NeoCon 2010, the World's Trade Fair for Interior Design and Facilities Management. Sponsored by Contract magazine, the Best of NeoCon awards recognize the top new products introduced at the show. Steelcase won a Gold award for RoomWizard, the first web-based scheduling system, in the Workplace Technologies category. The product was redesigned for a more mobile and connected workplace, with features that help schedule and manage meeting spaces to make better use of precious real estate and time. The first of two Silver awards went to FlexFrame(TM) workwall in the Files & Storage category. FlexFrame workwall is a wall-mounted, frame-based system that can be used in any space plan. The product "activates" vertical spaces for high-performance, tailored applications of storage, information display and technology integration. Topo by Coalesse, Steelcase's premium life/work furnishings division, won the second Silver award for Steelcase in the Furniture Systems: Enhancements category. With a new series of freestanding components, the award-winning Topo collection is uniquely clean-lined and easy to install while providing designers with a fresh palette of space-conserving options. In addition, node(TM) won an Innovation Award in the Education Solutions category. Built for many modes of learning, the node classroom chair is designed for easy transitions between lectures and group work. The chair offers active learning environments for co-learning, co-creation and group discussion to cater to the modern classroom. Rounding out the list of winners for Steelcase, SW_1 by Coalesse won an Innovation Award in the Tables: Occasional category. SW_1 is a collection of collaborative height and traditional occasional tables that support the social and collaborative activities that frequently occur during the knowledge creation process.

Martela - 1st quarter's results

Thursday 27 May 2010

Martela, the major office furniture group from Finland, today reported its 1st quarter's results to 31 March 2010. Sales at 22.6M Euros were down by 6.1% compared to the same quarter in 2009 and the company showed Operating Losses of 4.8m Euros compared with a loss of 0.3m Euros for the 1st quarter of 2009. Sales in Sweden and Norway were down by 14.2% to 4.3m Euros and in Poland by 14.4% to 1.6m Euros.

UK Government to slash £580m spend on office furniture

Tuesday 25 May 2010

Deciding on the UK Government's spending cuts was expected to be a grim task for the new government. But ministers appear to be having a whale of a time uncovering reckless Labour spending in the build-up to the general election. This will form the backdrop to the announcement of a £6 billion down payment on the bigger cuts to come. Minicab firms operating in the Westminster area can expect thinner pickings. Ministers have discovered that the government's annual taxi bill is £125m, while £320m is spent on hotels, £70m on flights (£11m by the Home Office) and £580m on office furniture. The annual bill for putting all those public sector bums on seats exceeds the full-year turnover of DFS, the furniture retailer. The advertising industry, too, can look forward to fewer slap-up lunches on the back of a £1 billion annual public sector spend, supplemented by a further £700m on marketing and media. The Department of Health, which rations drugs for cancer sufferers, is spending £275,000 promoting dance classes. The Foreign Office has four separate headquarters in Abuja, Nigeria. In the meantime, the £6 billion of cuts will include £513m from scrapping and spending less on quangos. Few tears will be shed over what are largely job creation schemes. Vince Cable, the business secretary, has taken on the chin big cuts in his department's budget. It all looks remarkably smooth. (Reprinted from The Times, London)

Quarterly index shows 'modest' improvement for US office furniture industry

Monday 3 May 2010

The office furniture industry posted “modest” improvements during the first quarter, as activity in a number of areas increased, according to a quarterly index. The overall index from Michael A. Dunlap & Associates registered 51.51 in April, compared to 50.64 in January and 51.45 in October 2009. “After office furniture makers posted the worst one-year downturn ever in 2009, the result of the quarterly survey affirms a recovery is ahead”, Michael Dunlap said. “I think that there are enough strong indicators in the April survey that demonstrate that the worst is behind us and that we are finally seeing some solid signs of recovery,” Dunlap said. “However, I think it will take at least another 12 to 15 months to come out of this recession with any significant growth.” Dunlap’s index is based on the results of surveys with executives at office furniture makers and suppliers on activity in 10 areas during the most recent quarter. The personal outlook among executives improved to 53.39, the first time since October 2008 it was above 50.0. Dunlap called the improvement “encouraging.” Indexes for capital and tooling expenditures “improved significantly,” Dunlap said, and new product development “soared” to 65.71. The index for order backlog increased as well. On the downside, indexes for gross shipments and hours worked declined, while the employment index remained steady.

Lifeline for Australian furniture firm Living Edge

Wednesday 21 April 2010

Australian designer furniture company Living Edge, which was placed in receivership last week, may have been thrown a lifeline by one of its major suppliers, US-owned furniture maker Herman Miller (Australia). Receivers and managers McGrathNicol yesterday confirmed Herman Miller was considering making an offer for Living Edge's business, for an undisclosed sum, by the end of the month. The offer would include Living Edge's existing customer contracts -- subject to due diligence. It is understood that Living Edge's founder and major stakeholder Peter Griffin was removed from the business on the same day the receivers were appointed. In November last year, the company took out a loan for $7 million according to documents lodged with the corporate regulator. The National Australia Bank appointed McGrathNicol as receivers and managers on April 12. The fate of Living Edge's 75 employees is uncertain, with one staffer claiming he has not been paid his superannuation. Living Edge's corporate and retail customers who have paid deposits on their designer furniture are also uncertain whether they would receive their goods as the receivers have frozen all assets. "Herman Miller have agreed interim arrangements with the receivers and managers to ensure trading continues until 30 April," the receivers said. "This non-binding offer signifies Herman Miller's commitment to both existing and prospective customers in the Australian market . . . "

Knoll Q1 profit falls 77 pct

Thursday 15 April 2010

Office furniture maker Knoll Inc announced a 77% fall in quarterly profit, hit by a decline in office systems sales, and said it expects a recovery in demand in the second half of 2010. For the first quarter, net income was $2.2 million, or 5 cents a share, compared with $9.5 million, or 21 cents a share a year ago. Excluding items, the company earned 10 cents a share. Sales fell 18 percent to $175.3 million. Analysts on average had expected earnings of 13 cents a share, before special items, on revenue of $179.2 million, according to Thomson Reuters I/B/E/S. Outstanding orders at 31 March was $138.9 million, a decline of 15 percent over the last year, the company said. Shares of the company closed at $12.49 Thursday on the New York Stock Exchange.

Ahrend to acquire ASPA

Wednesday 7 April 2010

Hal Holding wants to merge its interests in two office companies, Ahrend and Aspa. To this end, the listed investment company of the Van der Vorm has sent a request to the Dutch Competition Authority (NMa). Hal has owned Ahrend for the past ten years via its investment vehicle, Stonehaven. Stonehaven is itself is a jointly owned investment vehicle of Hall and the Brenninkmeijer family. In June last year Stonehaven and another Dutch investment company, Tinseltown Investments, bought the Benelux activities of the loss making Samas Groep. Stonehaven took 40%; Tinseltown 60%. Under the name Aspa - an existing trade name of Samas - the company made a fresh start. In anticipation of the book review and approval by the NMa, Stonehaven bought out Tinseltownand Stonehaven will have full control of Aspa and Ahrend.

Bisley at Orgatec

Sunday 4 April 2010

Bisley will be showcasing several new products and innovations at Orgatec 2010 in Cologne. Bisley continues to develop its international business, and will be extending its presence with a 30 per cent larger stand in a more prominent location to further strengthen its presence in the European marketplace.

Herman Miller to Acquire Colebrook, Bosson & Saunders

Monday 29 March 2010

Herman Miller has a broad portfolio of products built with ergonomics in mind, from highly adjustable chairs to work-to-stand desks. But the company has never had a set of products to help workers finely tweak their workstations. All that changes with Monday's announcement that the company purchased Colebrook Bosson Saunders (CBS), a UK-based computer support and ergonomic product company. The move puts Herman Miller in a position to compete directly with companies like Humanscale, Steelcase's Details division and Knape & Vogt's Idea at Work for the ergonomic support product market. It appears to be a good fit. According to the company's website, "At Colebrook Bosson Saunders we believe passionately in design. Over the last 17 years,we have developed innovative and elegant solutions that create space and comfort for people in a wide range of application areas. As technology develops at an ever increasing rate, so do the opportunities to create stylish products to make that technology more meaningful to people's lives." The company claims its products "bridge the gap between furniture and technology" and create adjustable work spaces that promote a healthy and productive working environment. CBS has an in-house design team and has a knack for making specials for customers. And CBS already has a global presence with offices in the U.K., U.S., Australia and Japan, which support a world-wide network of manufacturers, dealers and distributors. Through these partnerships, the company's products have been installed in some of the most high profile international design projects. The company supplied its monitor arms to BMW's Leipzig, Germany office, the University of Oxford, Heathrow Airport Terminal 5, Merrill Lynch in Japan, Royal Bank of Scotland, Tate Britain Gallery and for home applications as well. In addition to monitor supports, the company also makes CPU and AV screen supports, organization and storage tools, power, data and cable management products, laptop stands and mobile workstations.

Steelcase 1st quarter loss higher than expected; share price falls

Wednesday 24 March 2010

Office furniture maker Steelcase Inc posted a surprise quarterly loss, partly due to restructuring expenses, and forecast a first-quarter loss higher than market expectations, leading its shares to fall as much as 12 percent. The company forecast a first-quarter loss of 5 cents to 9 cents a share, on revenue of $520 million to $540 million. Analysts were expecting a loss of 1 cent a share, on revenue of $566.3 million, according to Thomson Reuters. Steelcase, along with peers such as Knoll Inc and Herman Miller, has been hit by weak demand, high office vacancies and corporate downsizing, resulting from the weak economy. According to the latest industry data provided by Business and Institutional Furniture Manufacturers Association (BIFMA), shipments and orders of office furniture in the United States will decline 3.8 percent and 1.5 percent, respectively, in 2010. However, the company on a conference call with analysts said orders have continued to strengthen through the first three weeks of March and believes that modest growth is possible in fiscal 2011. The company added that its forecast does not include any potential impact from the U.S. healthcare reform legislation that was recently approved. If the legislation is passed as proposed during the first quarter, the company maybe be required to record additional deferred tax expense during the period, Steelcase said in a statement. FOURTH-QUARTER RESULTS The company posted fourth-quarter loss of $13.6 million, or 10 cents a share, compared with a loss of $65.7 million, or 49 cents a share, a year earlier. The company posted adjusted loss of 5 cents a share, compared with analysts' expectations of breakeven, according to Thomson Reuters I/B/E/S. The latest quarter included a restructuring cost of $9.9 million. Revenue fell about 16 percent to $551.9 million, lagging behind analysts' expectations of $571.7 million. Shares of the company were down 10 percent at $6.50 Tuesday afternoon on the New York Stock Exchange. They touched a low of $6.35 earlier in the session.

Knoll to move some manufacturing operations from Grand Rapids

Friday 19 March 2010

Office furniture maker Knoll Inc has said it will relocate some manufacturing operations at Grand Rapids, Michigan to other sites to better align its manufacturing footprint with demand. The move, which includes voluntary and involuntary layoffs, will result in a charge of about $7.5 million to be recorded from the second quarter of 2010, Knoll said in a regulatory filing. The company will relocate some of its warehouse distribution centres into the Grand Rapids site in order to make use of available space. Office furniture makers have been hit by weak demand, high office vacancies and corporate downsizing as firms cut costs to weather the downturn. The restructuring will commence in the second quarter of 2010 and continue through the second quarter of 2011.

Analyst upgrades Knoll, Steelcase and HNI; downgrades Herman Miller

Tuesday 16 March 2010

An analyst raised his ratings on three office furniture companies Tuesday, citing improving industry demand. Budd Bugatch of Raymond James said in a client note that the sector is still under pressure as the economy continues to recover, but "signs are beginning to emerge that suggest there may be some light at the end of the tunnel." This includes moderating job losses and better corporate profits driven mostly by cost cuts. Bugatch upgraded Knoll Inc. to "Strong Buy" from "Outperform," Steelcase Inc. to "Strong Buy" from "Market Perform" and HNI Corp. to "Outperform" from "Market Perform." Knoll's stock added 39 cents, or 3.2 percent, to $12.77 in afternoon trading. It reached a 52-week high of $13.08 earlier in the session. Shares of Steelcase gained 37 cents, or 5.3 percent, to $7.42, while HNI's stock added $1.18, or 4.6 percent, to $26.65. Bugatch also downgraded Herman Miller Inc. to "Market Perform" from "Outperform," as its stock has performed better than its peers recently and likely has little room for upside. Still, the analyst said he likes Herman Miller because of its "excellent management, innovative design and lean manufacturing." The company's stock fell 60 cents, or 3 percent, to $19.49.

Herman Miller “Most Admired” Company

Tuesday 9 March 2010

Herman Miller was once again named a “Most Admired” company by Fortune magazine, marking the 21st time in 23 years that the Michigan–based office furniture manufacturer took the laurel over its respective Home Equipment and Furniture industry. Herman Miller, with a total score of 6.39, also ranked first among its industry in innovation and social responsibility. A spokesman for the company said “The Most Admired recognition is important to us,, particularly because we've sustained the top ranking over so many years. It's also a unique form of peer recognition because the survey participants are the executives and board members of the industry itself, along with third party analysts and experts. Finally, it's a source of shared pride across Herman Miller--we're committed to problem-solving excellence and creating the best solutions for our customers and we couldn't make this happen without the dedication of all our employees, across our entire business,” comments representatives of Herman Miller. “This achievement belongs to all of those who demonstrate the values that drive our business and accomplish the goals we set for ourselves every year.” Two of Herman Miller’s competitors, Steelcase (No. 6 with 5.76) and Muscatine, IA –based office furniture manufacturer HNI (No. 9 with 5.58), also appeared on the list, which Fortune describes as “the definitive report cars on corporate reputations.” Fortune’s annual Most Admired List, in cooperation with the Hay Group, sorts the top foreign companies operating in the U.S. by industry, representing the 10 largest in each. Over 600 companies in 33 countries were surveyed. The Most Admired feature will be published in Fortune’s March 22 issue.

Around 50 jobs to go at Senator

Thursday 4 March 2010

AROUND 50 jobs are set to go at Senator in Altham, Lancashire which has been hit by a downfall in businesses ordering office furniture. Bosses at Senator International said around five per cent of the workforce of just over 1,000 people will be made redundant. The group said a drop in order during a normally busy period had led to the announcement. Staff were told about the redundancies on Tuesday and were meeting with management yesterday as a 30-day consultation began. Paul Clarke, commercial director, said: “The first three months of the year are usually a busy time but nothing is happening at the moment. “In the current climate office furniture isn’t totally necessary. It’s like a new kitchen or work on your own home, you can usually hang on another year.” “We are confident of the future for its remaining workforce and the many local suppliers who manufacture a large proportion of its componentry . “These measures, as unpalatable as they are, will result in a more secure future for the company and its employees.”

Kinnarps makes a major acquisition in Germany

Thursday 25 February 2010

Kinnarps, the Swedish-owned supplier of furnishing solutions for offices and public spaces, has announced its acquisition of the German operations of Samas, one of Germany’s workplace furniture market leaders. Through the acquisition, Kinnarps becomes one of the leading suppliers in Europe, whilst increasing its presence and product range in the German market. “The acquisition of Samas’s German operations gives us a very strong market position in Germany, which is the leading market for office interior solutions in Europe,” says Henry Jansson, CEO and President of Kinnarps. “The acquisition also strengthens our position with regard to both the wider European and international markets.” The acquisition of Samas, Germany, includes two production units, a range of locally adapted products, a strong brand portfolio and a comprehensive sales organisation. Even before the Samas acquisition, Kinnarps was a leading workplace furniture supplier in Europe, exported to more than 40 countries worldwide, had 16 sales companies of its own and 200 showrooms globally. “We will have a leading product and brand portfolio for further European and international development, says Henry Jarlsson. “A strong local presence and more complete offers to the market give good potential for the future. The Kinnarps Group is now better equipped than ever, in terms of product, production and markets.” Commenting on the possible longer-term impact of the acquisition on the company’s UK operations, Kinnarps UK MD Paul Van de Heyde comments: “Although the immediate focus is to strengthen and build on the brands in Germany, the long term implications offer exciting opportunities for the UK market, particularly as Kinnarps UK builds both its product portfolio and reach across Britain with more local business centres." Samas Germany has a turnover around 1 billion SEK (c. £86.9m) and together with Kinnarps the yearly, calculated turnover will be around 4.5 billion SEK (c. £391.1m). The combined workforce will number around 2,500 employees. Samas is well known in Germany for its brands Drabert, Martin Stroll, Fortschritt, MBT and Schärf. Samas products are at the cutting edge of design and ergonomics. View movie

Outlook: US office furniture industry will grow again in a year

Monday 22 February 2010

The US office furniture industry should return to sales growth again in a year, after posting a further — albeit much more moderate — decline in 2010. The newest outlook from the Business and Institutional Furniture Manufacturers Association projects a 3.8 percent decline in North American shipments this year, to $7.55 billion. Quarterly shipment declines will steadily ease throughout the year before growth returns in the first quarter of 2011, according to the updated outlook from the Grand Rapids-based BIFMA, prepared by Global Insight. The outlook projects what BIFMA Executive Director Tom Reardon calls a “fairly healthy” 7.4 percent rebound in shipments in 2011, to $8.08 billion, halting the decline that began in late 2008. When complete, the downturn will have cost the industry nearly $4 billion in annual shipments in North America, or more than one-third of 2008’s sales volume. “That turnaround can’t come soon enough,” Reardon said. “We’re going to be bouncing along in this bottom for four quarters, but now there’s light at the end of the tunnel. We have something to look forward to.” The office furniture industry finished 2009 with North American shipments of $7.84 billion, according to BIFMA, down 29.7 percent from the $11.16 billion of 2008.

HNI sales down 35.2% and announce Loss In Q4

Wednesday 10 February 2010

HNI (Hon) reported a loss for the fourth quarter due to a decline in sales across segments. The net loss attributable to parent company was $10.77 million or $0.24 per share, compared with a net income of $8.51 million or $0.19 per share a year-ago. Non-GAAP net income per share was $0.26, compared with $0.45 last year. Net sales for the quarter declined by 35.2% to $413.67 million from $637.94 million a year-ago. Four Wall Street analysts estimated revenues of $418.48 million. Segment-wise, office furniture sales declined to $328.45 million from $512.83 million, while hearth products sales declined to $85.22 million from $125.11 million a year-ago. Selling and administrative expenses declined 16.5% to $135.42 million from $173.06 million in the year-ago period. Restructuring and impairment charges were higher at $27.04 million, compared with $21.51 million in the year-ago period. Year-to-date net loss attributable to parent company was $6.44 million or $0.14 per share, compared with net income of $45.45 million or $1.02 per share a year-ago. Non-GAAP net income per share declined to $0.70 from $1.46 in the year-ago period. Net sales for the year declined to $1.65 billion from $2.47 billion in the year-ago period. Street estimated earnings of $0.55 per share on revenues of $1.66 billion.

Haworth's sales declined 32% to $1.11 billion in 2009

Friday 5 February 2010

Haworth Inc. followed the rest of the office furniture industry in 2009, recording a 32.7 percent sales decline. The Holland-based Haworth this morning reported 2009 global sales of $1.11 billion, which compares with $1.65 billion in 2008 and $1.66 billion in 2007. The results “reflect the economic crisis experienced by the entire industry,” Haworth President and CEO Franco Bianchi said. "2009 was certainly a challenging year for the industry and for Haworth," Bianchi said. Even with the difficult economy, Haworth was able to improve market share in North America in 2009 and launched several new products globally, Bianchi said. The company last year also strengthened lean manufacturing practices and further integrated global operations, and is developing new products for introduction in 2010, he said. The family-owned Haworth, as it scaled back operations to match "a market that was in severe contraction," was able to maintain a strong financial position, Bianchi said. As the U.S. economy shows signs that it's slowly improving, Haworth is "very well" positioned for any rebound in business that may occur this year for the office furniture industry. "We've been busy trying to, at the same time, prepare a strong foundation for the future," Bianchi said. "2010 will be a little easier, but it will be tough."

Medical Board president sued over teen's death

Tuesday 2 February 2010

CHARLESTON, W.Va. -- John A. Wade, a Point Pleasant physician, faces a lawsuit alleging that he was responsible for the death of 17-year-old Andrya Lynn Jordan, who died when a filing cabinet crushed her. The lawsuit against Wade, who is president of the West Virginia Board of Medicine, could go to trial later this year. Jordan, the lawsuit states, "was killed while she was loading a file cabinet with medical files when the cabinet tipped over, fell on her, pinning her against a white vehicle resembling a jeep parked near the file cabinet." Jordan was filing papers for Wade's medical practice in a "remote/garage storage building," said the lawsuit filed by Lori McCoy, Jordan's mother. The lawsuit, filed in Mason County, also names Steelcase Inc. -- that designs, manufactures and distributes file cabinets -- as a defendant. When she died on Nov. 26, 2006, Jordan was a junior at Point Pleasant High School who had been working for Wade since July. The lawsuit McCoy filed on Nov. 20, 2009, alleges that Wade failed to install the file cabinet properly and failed to train Jordan how to use it safely. Jordan, who was 5 feet 2 inches tall, was crushed by a file cabinet that was 5 feet 5 inches tall, the lawsuit says. The lawsuit also alleges that Steelcase "knowingly" designed and sold a file cabinet that "was unsafe and had design defects." Steelcase, the lawsuit states, failed to provide users with proper instructions telling them "to fasten the file cabinet to prevent tipovers, to load from the bottom drawer up and to open one drawer at a time."

Prestigious American design awards for Ahrend

Thursday 28 January 2010

Two products from furnisher Royal Ahrend have received a ‘Good Design Award’ from the Chicago Athenaeum Museum of Architecture and Design: the Ahrend 360 chair, designed by FLEX the INNOVATIONLAB, and the Ahrend p h i l i n k table, designed by Voet Theuns Architects. The ‘Good Design Award’ of the Chicago Athenaeum Museum of Architecture and Design is generally regarded as one of the world’s most prestigious awards for new products and graphic design. The Athenaeum awarded prizes in more than twenty different categories. Ahrend won its awards in the Furniture category.

Row over Irish Aviation Authority's 300,000 Euro office revamp

Monday 25 January 2010

A dispute has broken out between the embattled Irish Aviation Authority and an office furniture supplier over the refurbishment of the authority's new offices on D'Olier Street in Dublin, Ireland In a recent address, the CEO of the IAA, Eamonn Brennan, said the Irish aviation industry was "experiencing the most challenging and difficult conditions in the history of aviation''. However, documents seen by the Sunday Independent reveal that this has not sparked any outbreak of fiscal rectitude when it comes to the fittings and furnishings of the authority's new offices. Instead, when it came to the tendering process, the authority is believed to have chosen a price that was significantly higher than a comparable bid from the Irish furnishing company Farrell Brothers. Responding to its failure to secure the contract, the company, which employs 100 workers, claimed that "we understand Farrell are �100,000 cheaper than the preferred supplier whilst meeting all your specifications''. They added that "given the prevailing economic conditions, we are fighting very hard for any business and this was reflected in the aggressive level of discount we applied to your project''. In a separate internal communication, a senior company figure claimed that their tender had been 30 per cent less than that of the preferred bidder and that another company had failed to secure the �300,000 job "despite the winning contract being 25 per cent dearer overall''. The communication included a stinging attack on the IAA as the figure claimed "over �100,000 is being wasted by a semi-state body on imported products which could be sourced in Ireland and would support our local economy''. It is believed that, in contrast, the winning company currently employs only two people in Ireland. The email from the losing contractor adds: "If I was given the task of sourcing a product for my employer, received five quotations, eliminated the cheapest ones then viewed the two remaining ones and bought the most expensive one, I would be fired." Speaking to the Sunday Independent, the Fine Gael transport spokesperson Fergus O'Dowd said: "It is a disgrace that in a scenario where an indigenous Irish company actually puts in the lowest tender they are not awarded the contract. In these straitened times we need value for money rather than comfort chairs for bureaucrats. "Stories such as this suggest it is time our disappeared Minister for Transport instituted a significant review into the procurement practices for semi-state companies.'' However, a spokesperson for the IAA said the authority had engaged in a "stringent, transparent and objective tender process'' which had been endorsed by "external legal advisers''. The spokesperson also said that "the quoted price differential was incorrect'' but added that some of the defeated tenders were cheaper than that of the successful company.

Kinnarps acqires the rump of Samas Germany

Tuesday 5 January 2010

The Swedish office furniture manufacturer and distributor Kinnarps has reached agreement in principle to take over the bulk of the assets of Samas Germany. Samas NV, now in liquidation, sold its German operations in mid 2009 to the private equity firm, Change Innovation GmbH, and local management. Following the acquisition which will be finalised in the next few weeks, Kinnarps will become the second largest office furniture distributor in Germany. The acquisition covers the Samas products, brands, production activities and distributor network. Among the brands are those once owned by Samas companies Drabert, Schaerf, Martin Stoll, Fortschritt and MBT. Samas Germany, with sales of almost 100 million euros, has 350 distributors and several independent dealers as well as production facilities in Minden and Trebbin.

Office Furniture execs see signs of a rebound

Wednesday 23 December 2009

Executives at Steelcase Inc. and Herman Miller Inc. say they are seeing early signs of improvement.In quarterly reports last week, both companies said their quarter-to-quarter sales grew again, though that’s partly attributable to seasonal factors.While year-to-year sales remain down significantly, order patterns do continue to stabilize as the U.S. economy gradually improves.“Currently, measures of economic health are mixed, but seem to suggest the beginning of a rebound,” Herman Miller President and CEO Brian Walker told brokerage analysts. “Today, we are hopeful that conditions are beginning to improve.”The Zeeland-based Herman Miller [Nasdaq: MLHR] reported sales of $343.7 million for the quarter that ended Nov. 28, down 27.9 percent from a year earlier but up 6.1 percent from the previous quarter.Net income totaled $9.6 million, versus $32.6 million a year earlier.Herman Miller’s orders picked up 7.3 percent from the previous quarter.Midway through its 2010 fiscal year, Herman Miller’s sales are off 30.1 percent, to $667.7 million, and net income is down 72 percent, to $18.0 million.Grand Rapids-based Steelcase [NYSE: SCS] reported a 6.5 percent quarter-to-quarter increase in sales but a 24.1 percent decline from a year earlier, to $616.1 million.Steelcase broke even for the third quarter of FY 2010.Year-to-date sales are off 31.2 percent, to $1.73 billion, with break-even net income.Sequential quarterly revenue growth, combined with stabilizing day-to-day order rates and a return of “modest” year-end business, “is further evidence that the first quarter of this fiscal year may have represented the low-water mark for Steelcase in this recession,” Chief Financial Officer David Sylvester said.Hackett. Just as it lagged the U.S. recession a year ago, office furniture will again lag a recovery, Steelcase President and CEO James Hackett said. The lag typically lasts two quarters on either side of a recession, he said.“But this recession was faster on the way in (for) our industry. What happens on the way out remains to be seen,” Hackett said. “I can, however, confidently say we are beginning to see factual evidence of trends moving in the right direction.”Steelcase expects sales of about $570 million for the present fourth quarter of FY 2010, which compares to $654.9 million a year ago, and break-even net income.

Herman Miller profit falls 28% but demand returning to normal

Thursday 17 December 2009

Herman Miller Inc.'s fiscal second-quarter profit fell 28%, but the office-furniture maker said it saw a return to normal demand trends during the quarter. "The relative strength of orders within our retail, health-care, and international entities was particularly encouraging. While we still have a long way to go, this order pacing is a welcomed indicator that market conditions are showing signs of improvement," Chief Financial Officer Greg Bylsma said, although he added that pricing pressure increased. Demand for office furniture has slumped as businesses cut spending during the recession, but Herman Miller has seen signs of the market stabilizing. The company has consolidated manufacturing and repurchased higher-yield debt to improve its bottom line. It also moved into the health-care furniture business by acquiring Nemschoff Inc. in June. For the quarter ended November 28, Herman Miller reported a profit of $9.6 million, or 17 cents a share, down from $32.6 million, or 60 cents a share, a year earlier. Excluding restructuring charges, per-share earnings were 20 cents in the latest period. Revenue dropped 28% to $343.7 million. Analysts estimated adjusted earnings of 20 cents on revenue of $334.5 million, according to a poll by Thomson Reuters. Gross margin ticked down to 32.2% from 32.6%. Orders dropped 19% from a year ago but were up 7.3% sequentially. Backlog was down 17% from a year earlier. Herman Miller's shares were unchanged from the Wednesday close of $16.78. The stock has more than doubled in value from a 13-year low in March.

Administrators forced to mothball Dams in face of £100,000 weekly losses

Wednesday 9 December 2009

DAMS International faced losing up to £100,000 a week when the administrators were called in to save the company in September. The Knowsley-based office furniture supplier had seen sales plummet in its financial year to September 30 – down £17m to just £25m. Joint administrators Paul Flint and Brian Green, partners from accountancy firm KPMG’s insolvency practice, were appointed as Dams International’s financial year ended and immediately mothballed the operation for a week, cutting 305 of the company’s 327 staff. More than 30 expressions of interest in the company and three indicative offers were received but the company was bought by former directors Chris Scott and Melissa Moore, children of founder Barry Scott, through a new company, Dams Furniture, which was created on September 10. They paid £365,000 for the machinery and other assets, with a further £600,000 due over 16 months for stock. The firm employed 72 people, including the retained 22 staff who transferred over. In their report the administrators explained that Dams International was “unsustainable” after incurring losses of £2m in the 43 weeks to the end of August. They said: “The fall in sales, coupled with an unsuccessful expansion into outsourced logistics, led to substantial losses being incurred. “The weakened trading position had a detrimental impact on cash flows resulting in the company having to therefore rely on their invoice discounting facility to fund ongoing trading. “However, with sales not forecast to recover for the foreseeable future, and a high fixed cost base designed to support a £40m turnover business, the operation in its current structure was unsustainable.” Administrators are forecasting a shortfall of £2.8m owed to unsecured creditors.

Kokuyo 1st to achieve BS2599 Cerification

Saturday 5 December 2009

Kokuyo Furniture Co., Ltd. has become the first Japanese manufacturer of office furniture – and believed to be the first in the world - to be certified to BS 25999, the internationally recognised standard for Business Continuity Management (BCM).

Updated outlook sees larger office furniture dip in 2010 than earlier forecast

Friday 20 November 2009

An updated outlook at the office furniture industry indicates that business has been declining in 2009 at a slightly lower rate than earlier expected but the market is expected to taking a bigger dip in 2010 than previously forecast. The quarterly outlook from the Grand Rapids-based BIFMA - Business and Institutional Furniture Manufacturers Association - estimates the industry will end 2009 with a 30.2 percent decline in shipments to $7.79 billion. The August outlook was for a 31 percent decline. The updated BIFMA outlook for 2010 estimates that industry-wide shipments will decline another 4.6 percent to $7.43 billion – a sales volume last seen in the early 1990s. The prior BIFMA outlook three months ago forecast a 1 percent decline in 2010. The American industry has been working through a severe downturn brought on by the U.S. recession, though recent data suggests the rate of decline has slowed and business is bottoming out. An industry recovery is expected to begin in the middle or latter half of 2010. Industry leaders and Steelcase Inc. and Herman Miller Inc. report quarter sales and earnings next month.

Steelcase shares price hike

Monday 16 November 2009

Shares of office furniture maker Steelcase (SCS) were hopping on Monday, up 61 cents, or 12%, at $5.78, after BB&T Capital Markets analyst Matt McCall this morning raised his rating on the stock to “Buy” from “Hold” with a $9 price target. Even without new commercial construction, demand for furniture can pick up, argues McCall, with office moves and changes in staff. With new unemployment claims coming in lower lately, there’s support for durable stocks like Steelcase, he argues.

Kimball results hit by recession

Thursday 5 November 2009

Citing decreased sales of furniture and electronics, Kimball International reported a decreased profit for the first quarter of its 2010 fiscal year with a profit of $1.8 million, or 5 cents a share, for its first quarter, which ended Sept. 30. In the same period a year ago, it had a profit of $2.2 million, or 6 cents a share. Kimball, based in Jasper, Indiana, produces both furniture and electronics. Its sales in both of those business sections declined during the recent quarter. The net revenue from its sales of electronics fell by 10 percent, to $165.5 million. The net revenue from its sales of furniture fell by 30 percent, to $109.2 million. James C. Thyen, Kimball president and chief executive officer, said the company's electronics sales have improved over recent quarters, despite their being lower than they were a year ago. In the first quarter of Kimball's 2010 fiscal year, those sales rose 9 percent over the fiscal 2009 fourth quarter, which had risen 8 percent over the third quarter. At the same time, the electronic segment spent 16 percent less on administrative costs than it had a year ago. Both the improved sales and lowered expenses helped to bolster the business's gross profit, Kimball said. The furniture segment, meanwhile, is suffering from the economic downturn. "We are now experiencing the full impact of the recession in our furniture markets, which usually lag the general economic activity," Thyen said. "The commercial real estate markets remain depressed." Still, the segment managed to reduce its selling and administrative costs by 18 percent. Shares of Kimball International closed at $8.02 Thursday, up 70 cents from the previous day.

Interface 3rd quarter sales fall by 21.6%

Wednesday 28 October 2009

Interface sales for the third quarter of 2009 were $218.4 million, compared with sales of $278.4 million in the third quarter of 2008, a decline of 21.6%. Approximately 3% of the sales decline was related to fluctuations in currency exchange rates relative to the year ago period. On a sequential basis, sales increased 3.3% over sales of $211.3 million in the second quarter of 2009. Operating income for the 2009 third quarter was $18.9 million, or 8.7% of sales, compared with operating income of $31.0 million, or 11.1% of sales, in the third quarter of last year. Operating income improved 13.0% over second quarter 2009 adjusted operating income of $16.8 million, or 8.0% of sales. Unadjusted, operating income in the second quarter of 2009 was $20.9 million, or 9.9% of sales. Net income attributable to Interface, Inc. for the 2009 third quarter was $5.5 million, or $0.09 per diluted share, compared with $8.4 million, or $0.13 per diluted share, in the year ago period. Included in the company's results for the third quarter of 2008 was a previously announced after-tax loss from discontinued operations of $5.2 million, or $0.08 per diluted share. "We saw steady sequential improvement in our business in the third quarter despite the challenging market conditions," said Daniel T. Hendrix, President and Chief Executive Officer. "Demand for modular carpet in the education, retail and government sectors held up well, offsetting in part the continuing softness in the corporate office segment. Geographically, our business in the Americas has been remarkably resilient, due primarily to our focus on non-office segments. Our business in Europe continued to struggle with the poor economy, but in an encouraging sign orders exceeded sales for the quarter. Asia-Pacific remains tepid overall, as multinational corporate customers have not yet returned to the market. However, Australia has been turning around and we're beginning to see a firming pipeline of orders in China. While the global economic environment continues to be difficult, we feel we've made the appropriate restructuring decisions and investments in our business, and continue to gain share as a leader in the carpet tile market."

HNI 3rd qtr sales tumble 31.5%

Wednesday 21 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.

Knoll 3rd-quarter profit falls on weak demand

Thursday 15 October 2009

Office-furniture maker Knoll Inc. said Thursday third-quarter profit dropped 76 percent as demand for furniture continued to be weak as consumers and small businesses cut back on larger-ticket items amid the recession. Net income for the three months ending Sept. 30 fell to $5.7 million, or 13 cents per share, from $24.1 million, or 52 cents per share last year. Analysts polled by Thomson Reuters, on average, predicted a smaller profit of 11 cents per share. Revenue fell 36 percent to $181.3 million from $283.5 million last year, ahead of the $174.7 million analysts expected. Sales fell across all product categories and regions, with the largest declines in international sales and office systems products. "While demand for our products continues to be severely impacted by the global economic crisis, we are pleased that we were able to continue to report industry leading levels of operating profitability," said CEO Andrew Cogan in a statement.

More information.

Dams recommences trading

Thursday 8 October 2009

Seventy jobs have been saved at a Merseyside-based office equipment supplier which had gone into administration. Dams International Ltd, based in Knowsley, was placed in the control of administrators KPMG on 30 September. The business and its assets has since been sold to a team lead by the company's former management led by managing director Chris Scott and Michelle Moore. The company was due to cut jobs on Merseyside and at its depots in England and Scotland. Dams, which was established in 1967, had a turnover of £42m in 2008. The firm operates from its manufacturing base in Knowsley, with a showroom in central London and regional distribution centres in Hertfordshire, York, Glasgow and Somerset. Paul Flint, joint administrator from KPMG, said: "We are delighted to have been able to complete such a quick sale of Dams International, minimising disruption to both suppliers and customers. "The management team were backed in this transaction by Venture Finance, who have been able to adopt a proactive approach in the current market place to facilitate this deal."

Dams International in Administration

Wednesday 30 September 2009

Paul Flint and Brian Green, partners from accountancy firm KPMG’s insolvency practice, have been appointed to run the office furnishings and furniture distribution business, one of the largest of its kind in the UK. Dams, owned by the Scott family, last year enjoyed annual sales of £42m but this year ran into trouble after it branched out into the logistics business. Established by Barry Scott in 1967, the firm operates from its manufacturing base in Kirkby with a showroom in central London, and regional distribution centres Dams employs 327 people around the UK. The administrators said they expect to make approximately 180 redundancies at the firm’s headquarters in Knowsley, near Liverpool.

Steelcase Posts Q2 Results

Friday 25 September 2009

Steelcase Inc.said it reported a break-even net income for the second quarter of fiscal 2010 compared with a net income of $31.4 million or $0.23 per share in the prior year period. Revenues for the quarter declined to $578.1 million from $901.8 million in the comparable period. On average, 3 analysts polled by Thomson Reuters expected the company to report revenues of $597.27 million for the quarter. Operating loss for the quarter was $1.0 million compared with a profit of $46.0 million in the previous year. The company expects third-quarter fiscal 2010 revenue of approximate $600 million, compared with $811.3 million in the prior year, which marked the beginning of the current downturn in our industry. The revenue estimate includes an assumption of approximately $9 million of favorable currency translation effects as compared to the prior year. Analysts estimate revenues of $613.63 million for the quarter.

BENE AG - Sales and earnings in the second quarter of 2009/10 negatively impacted by economic enviro

Tuesday 22 September 2009

Quarterly report 23.09.2009 - Drop in sales by 24.1% to EUR 95.8 million - EBIT decreased to EUR -6.4 million in the second quarter - Cost cutting measures show first effects - Balance sheet structure still solid Vienna/Waidhofen an der Ybbs, September 23, 2009. In the second quarter of 2009/10, sales and earnings of the Bene Group were still considerably impacted by the difficult economic environment in most of the sales markets. Year-to-date sales dropped by 24.1% to EUR 95.8 million in the first half-year of 2009/10 (first half-year 2008/09: EUR 126.2 million). In Austria, in the first six months of 2009/10, sales decreased by 28.3% to EUR 26.8 million (first half-year 2008/09: EUR 37.4 million). Germany also reported a decline in sales compared to the previous period: Sales amounted to EUR 27.0 million, which is a minus of 19.3% compared to the prior year (first half-year 2008/09: EUR 33.4 million). In the UK, Bene still had to pay tribute to the continuing difficult economic environment: Despite successfully implemented major projects, sales fell by 32.0% to EUR 8.3 million (first half-year 2008/09: EUR 12.3 million). Contrary to the clearly slowed demand and the bad investment climate in Russia, Bene realised several large orders since the beginning of the year and fortunately increased sales by 18.3% to EUR 17.2 million (first half-year 2008/09: EUR 14.6 million). In comparison with the historical reference period of the previous your, sales of the "other markets" segment dropped by 42.6% to EUR 16.4 million (first half-year 2008/09: EUR 28.6 million). The ongoing difficult economic environment as well as the increased price competition for major projects in the individual sales markets resulted in a significant decline in the earnings figures of the Bene Group compared to the reference value of the prior year. The personnel and material cost cutting measures implemented already in the first quarter of 2009/10 could only partly absorb this decline. The year-to-date EBIT decreased by EUR 12.6 million to EUR -6.4 million (first half-year 2008/09: EUR 6.2 million). The EBT fell by EUR 13.6 million to EUR -7.7 million (first half-year 2008/09: EUR 5.9 million.) As a result of impairment losses and the increased interest charges from the bond, the year-to-date financial result deteriorated by EUR 1.0 million to EUR -1.3 million (first half-year 2008/09: EUR -0.3 million). The financing structure of the Bene Group was and will increasingly be striving for longer-term debt and the creation of strategic liquidity. Both, the issue of a corporate bond in the amount of EUR 40.0 million as well as the borrowing of a long-term investment credit subsidised by the ERP-fund (European Recovery Programme) serve this purpose. At the end of the second quarter, the equity ratio amounted to 34.2% (January 31, 2009: 46.8%). At the same date, net gearing was 31.9% (January 31, 2009: 11.9%). Mainly attributable to the finalisation and the start-up of the research and innovation centre at the site in Waidhofen/Ybbs as well as the modernisation and expansion of the distribution sites in Munich, Belgium and Ljubljana, additions to property, plant and equipment and intangible assets amounted to EUR 6.9 million in the first half-year of 2009 (first half-year 2008/09: EUR 9.5 million). On the reporting date July 31, 2009, the Bene Group employed 1,401 persons. Compared to the previous period, the headcount decreased by 78 persons or -5.3 %. Worldwide, the markets are still at a low level. According to the current economic forecasts, no improvement of the environment is expected for the business year 2009/10. Due to the general uncertainty of the markets, the Management of the Bene Group keeps focusing on appropriate scenario models to quickly and extensively react to any further development. From today´s point of view, no reliable outlook for the overall year 2009/10 may be provided.

Herman Miller profit for Q1 falls 75%

Wednesday 16 September 2009

Office-furniture maker Herman Miller Inc posted a 75 percent drop in quarterly profit, weighed down by a decline in orders. For the first quarter ended 29 August 2009, net income was $8.4 million, or 14 cents a share, compared with $33.4 million, or 60 cents a share, a year earlier. Excluding items, the company, which recently acquired healthcare furnisher Nemschoff Inc, earned 22 cents a share. Net sales slumped 32 percent to $324 million. Consolidated orders for the quarter declined 40 percent to $322.1 million. Three analysts on average were expecting earnings of 19 cents a share, before special items, on revenue of $325.9 million, according to Reuters Estimates.

Godfrey Syrett aims for £30m of sales

Wednesday 9 September 2009

Godfrey Syrett, the NE England office furniture manufacturer, believes it can add £3m to its year-on-year sales as a result of its work in the public sector, which includes providing furniture to the MoD in Iraq and Afghanistan. Despite completing a £20m contract to supply furniture to the Department for Transport and the Office for the Deputy Prime Minister, Newcastle-based Godfrey Syrett believes it can grow its sales from £27m to £30m as a result of its ongoing work with the MoD and the Government’s Building Schools for the Future (BSF) initiative. The firm, which employs over 240 staff and recently created around 24 jobs, has been providing its furniture to barracks around the world for over a year and has already completed £5m worth of work as a result. It has seen a big increase in the amount of public sector work it has attracted since the onset of the recession, with Government contracts now representing 70% of its operations. These include a rolling contract to provide furniture for a number of new academies as part of the Government’s Building Schools for the Future (BSF) programme, which has seen the firm work on a range of projects worth between £200,000 and £800,000. These include supplying furniture for the £30m Bede Academy in Blyth and the £23.8m Durham Johnston School in Durham City. Sales director Martin Horne said: “We were pleased to land work with the Department for Transport in 2005, and have since gone on to secure a number of lucrative contracts in the public sector since then. “We are also working for the NHS and believe these contracts will help us to continue our growth despite the tough climate.” Last year saw the company, which started out in 1947 as a supplier to the then newly created NHS, purchase an 80,000 sq ft building next to its head offices in Killingworth, which it hopes to use to expand its production space, with most of the work carried out at its 120,000sq ft factory in Langley Moor, County Durham. “Despite many of our clients having been impacted by the recession, we have been able to continue our growth through the public sector and expect this to continue over the coming years,” Mr Horne said. “However, contracts such as the one with the MoD still involve bidding for various schemes, so the extent of our growth still depends on this process.”

Staples Profit Falls 38% as Businesses Curb Spending

Tuesday 25 August 2009

Staples Inc., the world’s largest retailer of office supplies, said second-quarter earnings fell 38 percent as companies bought fewer desks and chairs and profit margin narrowed. Net income dropped to $92.4 million, or 13 cents a share, from $150.2 million, or 21 cents, a year earlier, Framingham, Massachusetts-based Staples said today in a statement. Sales rose 9 percent to $5.53 billion in the 13 weeks ended Aug. 1, helped by the 2008 acquisition of Corporate Express NV. As companies cut jobs and equipment purchases in the worst U.S. economy since the Great Depression, Staples is adding more- profitable technical services such as computer repair. Gross margin, the fraction of sales remaining after subtracting the cost of goods sold, shrank to 25.7 percent from 26.6 percent. “The only number that’s going to give anyone any concern is the gross margin,” Scott Tilghman, an analyst at New York- based Hudson Square Research Inc., said in a telephone interview. Tilghman estimated a gross margin of 26.2 percent. Excluding integration and restructuring expenses, profit totaled 16 cents a share, in line with the average of 15 analysts’ estimates compiled by Bloomberg. Staples fell 40 cents, or 1.8 percent, to $21.79 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have gained 22 percent this year. Furniture Falls The size of the average purchase fell because of lower demand for business machines and office furniture. Furniture sales dropped more than 30 percent, President Michael Miles said on a conference call. Computer sales improved, as did revenue from EasyTech, the technical-services offering, he said. Sales at U.S. and Canadian stores open at least a year fell 5 percent. Tilghman had estimated a 6 percent decline. “We are feeling like the economy is coming back a bit,” Chairman and Chief Executive Officer Ron Sargent, 53, said on the call. Revenue in the quarter fell 14 percent when compared with a year-earlier total that includes Corporate Express’s sales from May and June 2008, before the takeover.

Haworth lays off 600 in Canada

Monday 24 August 2009

Some 600 people at Haworth Inc.'s Calgary manufacturing plant were told yesterday they will be laid off, the latest victims of the recession that has obliterated thousands from the workforce across North America. The plant was formerly owned and operated by SMED International, which Haworth took over in 2000. Haworth, an office furniture maker based in Holland, Mich., is moving the Calgary manufacturing operation to the U.S. state, where it is expecting a tax incentive package worth $22.4 million over 13 years. The company also cited "excess capacity as a result of the global economic environment" as a reason for the Calgary plant closure and the job cuts which will happen over the next year. But according to one Haworth employee who wished to remain anonymous, the company's Calgary operations hadn't turned a profit for nearly a decade. "There's always been rumours. There've been rumours probably for about nine years," he said. So when the Haworth employees were informed of the layoffs at 8:10 a.m. yesterday, the news "came as a shock, but not really as a surprise," he said. Those affected by the layoffs have yet to find out about severance packages, but the employee said because the layoffs were so "massive," the packages probably won't be large. The man worked for Haworth for more than 10 years. Now, he'll have to update his resume and look for a job during a time when the ranks of Calgary's unemployed are growing. While most observers agree that the Alberta economy is on the mend, unemployment generally tends to increase during the first months of a recovery. Alberta's unemployment rate sat at 7.2% in July. The manufacturing sector has been one of the hardest hit since the recession took hold last year. "Obviously, with the market the way it is, it is probably a little tougher to find similar work," the employee said. Haworth will keep an office and a showroom in Calgary and employ about 100 people. But the company will sell it's manufacturing plant in the Foothills Industrial Park. "The existing building will be put up for sale, but will continue to remain open as we seek to develop a space in the area to house a new showroom," spokeswoman Angela Luedke said in an e-mail. "We plan for Calgary to remain a critical centre of excellence for our walls business." After the layoffs, Haworth will employ about 600 people in Canada.

Interface Sales Fall 28% in 2nd Quarter

Tuesday 28 July 2009

Interface, Inc. announced on Wednesday its results for the second quarter ended July 5, 2009. Sales for the second quarter of 2009 were $211.3 million, compared with sales of $295.0 million in the second quarter of 2008, a decline of 28.4%. Approximately 6% of the sales decline was related to fluctuations in currency exchange rates relative to the year ago period. Operating income for the 2009 second quarter was $20.9 million, or 9.9% of sales, compared with operating income of $33.4 million, or 11.3% of sales, in the second quarter of last year. In the second quarter of 2009, the company recorded other expenses of $6.1 million, or the equivalent of $0.06 per diluted share, associated with the completion of its previously-announced issuance of 11 3/8% Senior Secured Notes due 2013. Excluding the items described above and the bond offering expenses, net income attributable to Interface, Inc. for the 2009 second quarter was $5.1 million, or $0.08 per diluted share, compared with net income attributable to Interface, Inc. in the year-ago period of $15.9 million, or $0.25 per diluted share. Including all items, the company reported second quarter 2009 net income attributable to Interface, Inc. of $3.7 million, or $0.06 per diluted share. "Interface has made substantial progress during the second quarter of 2009, with sequential quarterly improvements in orders, sales and operating income in the face of a global marketplace that continues to be very challenging," said Daniel T. Hendrix, President and Chief Executive Officer. "The successful implementation of our restructuring initiatives and the further development of our market diversification strategy have enabled us to improve our cost structure and operational efficiency while maintaining our competitive position in the marketplace. Even though our results compared with a record second quarter last year reflect the continued pressure of current economic conditions, the non-office segments faired reasonably well, driven mostly by the education buying season. The corporate office segment, however, continued to deteriorate, which particularly impacted our performance in Europe and the emerging markets." Patrick C. Lynch, Senior Vice President and Chief Financial Officer, commented, "Interface has taken a number of steps to significantly reduce its cost structure in light of recent global economic pressures, and most of the benefits of these actions flowed through our results for the 2009 second quarter. We also took significant steps towards our goal of strengthening our balance sheet during the period, successfully refinancing nearly all of our near-term debt maturities and ensuring we have the capital necessary to continue executing on our strategic initiatives. As a result of our focus on enhancing liquidity, managing costs and generating free cash flow, we exited the quarter with $90 million in cash." For the first six months of 2009, sales were $410.6 million, compared with $556.7 million for the same period a year ago, a decrease of 26.2%. Approximately 8% of the sales decline was related to fluctuations in currency exchange rates relative to the first six months of last year. Excluding the 2009 second quarter items described above, as well as a pre-tax restructuring charge of $5.7 million in the first quarter of 2009 as previously announced, operating income and income from continuing operations for the 2009 six-month period were $25.6 million (or 6.2% of sales) and $5.9 million (or $0.09 per diluted share), respectively. These figures compare with operating income and income from continuing operations of $64.4 million (or 11.6% of sales) and $30.6 million (or $0.47 per diluted share), respectively, in the first six months of 2008. Including all items, operating income and income from continuing operations for the 2009 six-month period were $23.9 million (or 5.8% of sales) and $0.4 million (or $0.00 per diluted share), respectively. Net loss attributable to Interface, Inc. in the first six months of 2009 was $0.5 million, or $0.01 per diluted share, compared with net income attributable to Interface, Inc. in the year-ago period of $30.0 million, or $0.47 per diluted share. Hendrix concluded, "Our market diversification strategy and the operational initiatives that we implemented during the first half of the year have enabled us to deliver solid second quarter results. The secular shift toward carpet tile is continuing, even through the severe downturn in the global office market. We believe that by taking the appropriate actions to streamline our operations at the right time, we have protected the profitability of our business. Although we saw a recovery in orders during the quarter and are encouraged by sequential monthly sales trends, we remain cautious about the operating environment through the second half of the year, with market conditions in Europe and many emerging markets showing continued signs of weakness. Despite this, we are pleased with our ability to execute on our initiatives to realize operating efficiencies across the business, and we plan to continue to focus on managing our costs and generating strong cash flow, while at the same time enhancing our position in the marketplace through further investments in market diversification."

HNI of Muscatine Iowa loses $1.4 million in second quarter as sales fall

Thursday 23 July 2009

HNI Corp. reported a net loss of $1.4 million for the second quarter, caused by the closing of two plants and restructuring of hearth operations. HNI Corp. closed its South Gate, Calif., and Louisburg, N.C., office furniture factories in the quarter. Second-quarter results also included a nonoperating gain resulting from the sale of the corporate aircraft. The Muscatine office furniture manufacturer had sales of $383 million, a 37.5 percent decrease from the same period a year ago. The operating loss was $15.8 million for the first six months of the year, compared with operating income of $35.4 million in the first half of last year. "We made strong progress resetting our cost structure and generating cash flow during the quarter," Chief Executive Stan Askren said in a statement. "We are pleased with our progress, particularly with our office furniture operations." HNI Corp. expects market conditions to remain difficult, but "we are seeing signs of stabilization, particularly in our office furniture businesses," Askren said. Third-quarter revenue is expected to exceed the second-quarter levels if "historical seasonal demand patterns" continue to hold.

Office supplier Vasanta on brink of refinancing deal

Sunday 12 July 2009

Vasanta Group, one of Britain's largest providers of office supplies, is close to agreeing new private equity backing, which could secure the company's future. Formerly known as Kingfield Heath, Sheffield-based Vasanta has been hit by the removal of credit insurance and the economic downturn. The company employs 1,500 people and it is not clear whether the injection of new investment will safeguard the future of all its employees. Vasanta is owned by the private equity firm Electra Partners, which at the time of its half-year results in May admitted that it had written off £28m.

Samas sale of German + Central & Eastern European operations leaves Company as a shell

Wednesday 1 July 2009

Samas NV (Samas) has reached final agreement with a consortium consisting of the German financial investor Innovation Change GmbH (Berlin) and local management on the divestment of its German and Central & Eastern European operations. Samas Germany will continue its activities as a whole on a standalone basis. On 19 June 2009, the intended divestment of the German and Central & Eastern European operations was approved by the shareholders. The process is executed in close consultation with Samas’ lending banks and with current credit arrangements under review. Carl-Christoph Held, chairman of the Executive Board and CEO of Samas: “Given our very tight financial household, the lack of available external funding and the lack of a potential buyer for Samas as a group, the sale of our German operations and our smaller scale operations in Central and Eastern Europe is the best strategic alternative going forward in order to secure continuity of these activities. The deal provides the local operations with funding to implement their plans and further improve their business. Although inevitable, it is still a highly unfortunate move for Samas as a group and its shareholders. Therefore, we would like to express gratitude for their understanding of the situation and approval of the intended divestment at the recently held shareholders’ meeting. Also, having worked for Samas Germany for many years, before joining the Samas NV Executive Board, I am proud of how Christian Nawin as Managing Director and his team have handled this complex transaction and are steering their company through these challenging times. I wish them all the best for the future.” Christian Nawin, Managing Director of Samas Germany: “Through this deal we have gained access to funding for working capital and required restructurings and created a new future for Samas Germany. We are pleased with the investor consortium and believe they are able to contribute significantly to our business. In addition, we would like to thank our local government for the constructive and supportive role they have played in this process. We now have the ability to build a new and strong German office furniture company headquartered in Worms. We plan to continue cooperation with other former Samas entities in order to serve both Samas Germany’s national and international customers with office furniture solutions. We are convinced this deal will boost our clients' and suppliers' confidence to cooperate with us and to continue and further improve our business of creating innovative and contemporary office solutions focused on how we envisage the future of work.” Background and consideration Samas Germany which includes the operations in Central & Eastern Europe, markets a number of leading office furniture brands each of which targets a specific market segment. The brands include Drabert, Falpro, Fortschritt, MBT, MARTINSTOLL, Nick, and Schärf. The transaction comprises the sale of 94% of the shares in Samas Germany and includes the transfer of corresponding share of the assets to the consortium; the remaining part of the shares is expected to follow in due course. The deal also includes the transfer of the existing conditional option to acquire the Central & Eastern European operations, as granted to one of the consortium partners which bought the Benelux operations, implying that this option will remain in tact. The total consideration amounts to approximately �20 million, 90% of which consists of the transfer of locally allocated bank debt. The value and financial implications of the transaction are in line with the valuation incorporated in the preliminary (unaudited) annual results as published on 12 June 2009 and discussed in the Extraordinary General Meeting of Shareholders on 19 June 2009. In the financial year 2008/2009, the pro forma (unaudited) turnover of Samas Germany and Central & Eastern Europe declined by 6% year-on-year to �179.6 million. The pro forma (unaudited) normalized operating loss came in at �3.7 million. The transaction involves a transfer of approximately 1,000 FTEs (Full Time Equivalents), of which 800 FTEs in Germany and 200 FTEs in Central & Eastern Europe. Additional funding has been provided to Samas Germany by a local German bank, backed up by support from local government. The investor consortium which acquired Samas Germany will seek to complete an already prepared refinancing in the coming months. The sale of the German and Central & Eastern European operations was enabled through the approval by Samas’ shareholders of the intended divestment at the shareholders’ meeting held on 19 June 2009, for which Samas wishes to express its gratitude. As earlier indicated, no payout to shareholders is foreseen. About Innovation Change Innovation Change GmbH is a Berlin (Germany) based investment holding driven by Worms born entrepreneur Harald Christ and his business partners Paul A. Vorsteher, Dr. Mathias Hiebeler and Max Rauch. Innovation Change is supporting German Small and Medium-sized Enterprises (SMEs) to overcome the present crisis by providing creative business solutions and hands-on support with regard to crisis management, interim financing and restructuring measures. Harald Christ, founder and chairman of Innovation Change: “Small and Medium-sized Enterprises represent the blood circulation of the German economy. We have to make sure that this circulation stays in tact. In case of Samas Germany it is our objective to safeguard continuity of this traditional employer in the Rheinland-Pfalz region and to strengthen its market leading position with strong office furniture brands via a long term strategic investment.” Next steps Following the divestment of its German and Central & Eastern European operations, Samas will be reduced to a listed holding company with no operating activities. Further updates to the market regarding Samas NV, such as the annual results and the annual report will be provided in due course.

BENE AG / Bene announces results for first quarter of 2009/10

Tuesday 23 June 2009

- Decline in sales by 20 % to EUR 47.6 million - EBIT of EUR -0.8 million slightly negative - Still high equity ratio and low net gearing - Bond of EUR 40 million provides sufficient liquidity reserve - Package of measures as reaction to changed environment introduced Bene AG, listed in the prime market of the of the Vienna Stock Exchange, has not been able to escape the continuing difficult economic environment and has recorded a decrease in sales and earnings in the first quarter of the current business year (February 1 until April 30, 2009). In total, in the first three months of the current business year, sales of the Bene Group dropped by 20.2 % to EUR 47.6 million (Q1 2008/09: EUR 59.7 million). In the home market Austria, the Bene Group´s sales decreased by 26.2 % to EUR 14.5 million (Q1 2008/09: EUR 19.7 million). In Germany, the largest European office furniture market, the decline in sales by 10.0 % to EUR 14.3 was moderate (Q1 2008/09: EUR 15.9 million). Despite the acquisition of several projects, due to the still weakened investment climate, UK sales fell by 22.2 % to EUR 5.3 million (Q1 2008/09: EUR 6.8 million). In Russia, Bene improved sales by 51.0% to EUR 5.1 million in the first quarter of 2009/10 (Q1 2008/09: EUR 3.4 million). Overall, the "other markets" segment recorded a 39.7 % loss in sales to EUR 8.4 million (Q1 2008/09: EUR 14.0 million). In line with the sales development, earnings and profitability showed clear reductions. Compared to the previous year, the EBIT dropped by EUR 4.1 million to EUR -0.8 million (Q1 2008/09: EUR 3.3 million). The financial result deteriorated by EUR 0.4 million to EUR -0.5 million (Q1 2008/09: EUR -0.1 million). The EBT reached EUR -1.4 million and thus remained by EUR 4.6 million below the previous year´s reference value. Through the issue of an EUR 40 million corporate bond, the Bene Group has a balanced balance sheet structure and an additional liquidity reserve for the coming years. As of April 30, 2009, the equity ratio of 33.5 % still remains at a high level (January 31, 2009: 46.8 %). On the same reference date, net gearing amounted to only 17.0 % (April 30, 2008: -3.1 %). In the first quarter of 2009/10, total investments of the Bene Group for the finalisation and the start of operation of the research and innovation centre at the site in Waidhofen/Ybbs as well as the ongoing modernisation of the production facilities and the distribution sites added up to EUR 3.7 million (Q1 2008/09: EUR 4.0 million). On the reporting date April 30, 2009, the Bene Group had 1.525 employees and thus 68 people or 4.7 % more than on April 30, 2008. According to the current economic forecasts, no improvement is expected for the current business year 2009/10. In order to be able to react appropriately quickly and comprehensively in this environment, the Management of the Bene Group increasingly works with scenario models. From today´s point of view, no reliable outlook for the overall year 2009/10 may be provided.

Moody's puts Herman Miller rating on review

Wednesday 17 June 2009

Moody's Investors Service on Thursday said it placed furniture maker Herman Miller's senior unsecured notes rating on review for a possible downgrade. The review is due to expectations that the increasing unemployment rate, uncertainty in the commercial real estate market and the recession will lead to lower capital spending over the medium turn and lower operating performance below expectations. The rating is on $175 million in senior unsecured notes due 2011.

Samas Groep Preliminary Annual Results 2008/2009 and Trading Update

Thursday 11 June 2009

Samas N.V. (Samas) today announces its preliminary (unaudited) annual results 2008/2009. In accordance with IFRS, following inevitable strategic decisions, all operating activities are accounted for as discontinued operations following either their completed divestment (Samas France and Erco Interieurbouw) in the course of the financial year under review, their completed divestment as from 1 April, 2009 (Switzerland and Benelux) or the announcement of their intended divestment (Germany and Central & Eastern Europe). Discontinued operations which are divested or which are intended to be divested after 1 April, 2009 are accounted for as assets and liabilities held for sale and valued at fair value. Therefore, Samas today reports the preliminary (unaudited) consolidated annual results, which include the holding company and the result on the above mentioned discontinued operations. In addition, separate key financial figures are provided per discontinued operating activity. For comparison purposes, Samas also presents (unaudited) pro forma consolidated key financial figures for the financial year 2008/2009. These key figures include the holding company and all operating activities with the exception of Samas France as this subsidiary was divested by the end of the first half of the financial year under review. Throughout this release, the full year 2007/2008 pro forma consolidated financial results have been adjusted accordingly. Background Following a study of strategic options concluded last year, the objective was to create a more compact Samas and raise funds required for subsequent steps and restructurings. The initial strategic and operational roadmap included divestments of Samas’ French and Swiss operations combined with the sale & lease back of real estate and a subsequent refinancing using factoring. Fuelled by the ongoing economic crisis, the value of business assets declined. This affected the proceeds of required divestments and made fair real estate proceeds not attainable. Due to this and to the sharp deterioration in the office furniture markets the abovementioned objective has become less feasible, while the adverse developments in the financial markets have also further affected the ability to attract additional funding. As a consequence, cash flow from operations became negative in the course of 2008/2009 and Samas concluded not to be able to fund required restructurings on a standalone basis. The lack of opportunities to get sufficient funding through divestments, made additional external funding for the group inevitable. Up till now, Samas has not found financial partners for the Group which would bear the costs of such restructurings and provide sufficient working capital funding for the coming period, also taking into account the uncertain current economic and market sector circumstances. The recent disposals of the Swiss and Benelux operations made for these operations new funding available. Following these recent disposals of the Swiss and Benelux operations, and given Samas’ increasingly tight financial household, divestment of the remaining operations in Germany and Central & Eastern Europe is currently considered the most likely and desired way forward in order to secure the continuity of those activities. Availability of new funding for the operations is also a cornerstone for the intended divestment of the German operations. The preliminary (unaudited) annual results are prepared against this background. Consolidated key financial figures (excluding Samas France) • Net loss of �78.1 million including impairment charges, compared to a loss of �38.5 million last year. Net loss for the year consists of an operating loss of continued operations (holding company) of �7.5 million and a loss of discontinued operations of �70.7 million • Impairment charge of �6.3 million related to a (non-cash) write down of deferred tax assets (tax losses carry forward) and (non cash) impairment charges of in total �53.5 million due to revaluation of discontinued operations (� 49.0 million) and holding assets (� 4.5 million). • The revaluation of discontinued operations is triggered by the (intended) divestments of the operating activities leading to impairments for the Swiss activities of �10.9 million, for the German and Central Eastern European activities of �34.4 million and for Samas France of �3.7 million. • Negative equity of �13.8 million per year-end, compared to positive equity of �64.0 million at 31 March 2008 • Net debt reduced from �47.9 million to �31.5 million as per 31 March 2009, mainly due to divestment of Samas France and sale & lease back of real estate. Including subsequent divestments of Swiss and Benelux operations afterbalance sheet date, net debt will be further reduced and amounts �22 million today (post-closing Benelux) Consolidated annual results (continued operations = holding company) • Net turnover down 12% to �253.5 million year-on-year • Operating loss of �17.9 million, excluding impairments related to (intended) divestments and the result related to the divestment of Samas France • Last quarter 2008/2009 revenues declined with over 30%, leading to an operating loss of over �5 million and a negative EBITDA of approximately �3 million for the quarter. This trend continued in the first months of 2009/2010.

Boss Design is launched in the North American Market

Sunday 7 June 2009

Boss Design last week announced a joint venture with Tayco, which will see a selection of Boss Design branded seating products manufactured out of Toronto, Ontario, Canada and distributed throughout the North American market. Boss Design is a leading UK design and manufacturer of quality seating for the corporate marketplace. Since 1983 the company has experienced continued growth such that it is a significant international supplier today and now has a presence in North America. Brian Murray, Boss Design Managing Director said; 'These are indeed exciting times for Boss Design. We are delighted to be taking the Boss Design brand to North America with our partner Tayco. He added; "In recent years we have seen demand for our products increase throughout America. I look forward to working with Tayco and to seeing Boss Design seating installations throughout the North American market." "Tayco is very excited about our partnership with Boss Design," said Tayco President, Phil Philips. "Both companies have very ambitious plans for the joint venture and look forward to becoming a key player in the North American marketplace." Seven of Boss Design's product lines will be offered in the North American market: Kruze: designed by David Fax, Kruze displays a presence and panache that belies its versatility. The relaxed, smooth flowing forms of Kruze reflect the chair's ability to complement a wide range of environments. Kruze was honored with a bronze IIDEX Innovation Award in September 2008. Mars: Designed by Paul Brooks, Mars is a light and versatile family of meeting and visitor conference seating whose slim and refined appearance belies a strong and exceptionally comfortable chair. Mars was honored with a gold IIDEX Innovation Award in September 2008. Lily: An aesthetically satisfying task chair that distinctly combines precision engineering and flexible control that makes Lily an intuitive chair that can be easily adjusted by individual users. Choo: A very contemporary chair, Choo's sweeping curves add aesthetic innovation to the classic tub chair design. Moneypenny: Designed by Paul Brooks, Moneypenny is Boss Design's revolutionary new mesh chair. Sona: Design by Paul Brooks, Sona's contemporary, elegant design is characterized by a focus on ergonomics, high quality standards, and a strong aesthetic appeal. Sonatec: Design by Paul Brooks, Sonatec utilizes new materials and plastics to produce a task chair that is ergonomically sound.

Investors call "time" on Samas Groep

Wednesday 3 June 2009

Dutch office-furniture maker Samas Groep NV saw its stock drop more than 60% Wednesday after unveiling plans to sell its remaining businesses. The ailing company said on Wednesday it did not expect to distribute any proceeds from the sale to its shareholders as its business in Germany and central and eastern Europe would be sold at a book loss. The planned divestment will be put up to the vote at a shareholders' meeting on June 19. Samas is selling its remaining activities because it is not able to find sufficient cash to finance them. According to CFO Mark van den Biggelaar, there is much pressure on the company to divest from the units. He added that they had to be sold in order their continuity to be guaranteed. Following the news, Samas's stock was trading down 64.69% to EUR 0.101 at 1659 CET on Euronext Amsterdam. The announcement comes after last week the company said it had sold its business in Benelux for USD$7.1 million, noting it might need to dispose of its remaining units too, with the proceeds going towards debt reduction. According to Tom Muller, a Theodoor Gilissen analyst, the company must have said already last week that nothing would remain for its shareholders. But Van den Biggelaar noted that new facts had appeared in the past week, making certain that only an empty holding would remain. He did not elaborate further though. David Tomic of investor group VEB commented that it was not clear at the moment on what shareholders would have to vote on June 19. There is no definitive agreement about the remaining activities and the company has not said anything about the price, he said. Samas is currently in talks on the sale of the activities in Germany and CEE, but it does not expect to sign a deal before June 19. The office-furniture maker reported losses for the last several years and in 2007 it found itself in financial troubles, which made it seek help from banks and shareholders.

TEKNION, ACER DESIGN ANNOUNCE NEW OFFICE FURNITURE DESIGN PARTNERSHIP

Friday 29 May 2009

First new products from Teknion partnership with renowned European design firm to be displayed during NeoCon − Teknion Corporation today announced that it has partnered with Acer Design A/S of Bogense, Denmark, to bring contemporary office furniture products to market. The first of these new offerings – a continuation of the dna™ collection – includes mobile, height-adjustable worktables and a line of collaborative lounge seating. The worktable and lounge seating lines will be previewed in Teknion’s tenth-floor showroom during NeoCon in Chicago, June 15-17. “Acer Design brings a wealth of technological innovation and well-respected design experience,” said Scott Deugo, Teknion’s Senior Vice President of Design, Marketing and Sustainable Development. “Partnering with Acer is central to our ongoing strategy of working with international designers and design firms to bring our clients innovative, integrated office furniture from around the world.” “We are most impressed with Teknion’s commitment to design,” said Erik Simonsen, Managing Director of Acer Design. “Our initial projects are just the beginning of some exciting modern workplace designs that we will be introducing in partnership with Teknion.” “This partnership will enable us to bring new products to market that address emerging workplace trends – including increased collaboration, changing technology needs and supporting diverse ergonomic needs,” Deugo added. “We look forward to working with Acer Design as we continue to address the needs of the changing workplace.”

Samas sells Benelux operations

Tuesday 26 May 2009

Samas NV (Samas) has reached agreement to sell its Benelux operations to an investor consortium consisting of Tinseltown Investments and Stonehaven Holding, owners of the Ahrend Group, acquiring 60% and 40% of the shares respectively. The Benelux operations (Samas Benelux) will continue its activities as a whole on a standalone basis whereby it anticipates to relaunch the former trade names Aspa and Assenburg. On 7 May 2009, following the sale of its Swiss operations, Samas announced it is actively pursuing further strategic alternatives regarding its remaining activities. This process is executed in close consultation with its lending banks and with current credit arrangements under review. Carl-Christoph Held, Chairman of the Executive Board and CEO of Samas: “In the past months, we have been dealing with increasingly adverse market conditions and declining prices for business assets. This continued to vanish the anticipated positive effects of the implementation of our business roadmap, which followed our study of strategic options concluded last year. As a consequence, our financial household remained tight. This and the uncertainty regarding the full impact of the current downturn on our business required us to look beyond our initial roadmap and pursue further strategic alternatives, such as the divestment of our Benelux business announced today. Furthermore, I’m convinced that the strong market cooperation will be continued as it is still one of the focus areas of the Samas Benelux organisation to serve national and international customers with office furniture solutions. Therefore cooperation with Samas Germany, Samas in Central and Eastern Europe and the ‘former’ Samas entities in Switzerland and France will be continued.” Edward Vis, Managing Director of Samas Benelux: “This transaction is a good alternative for Samas Benelux going forward. With the support from our new shareholders, we receive funding for working capital and the required restructurings. As a new standalone company, we can now further implement and execute the business plan we have recently developed. As such we will be better equipped to deal with the downturn and to benefit from the eventual recovery in markets. Although the coming period will certainly not be easy, I am confident this deal provides us the opportunity to continue and further improve our business of creating innovative and contemporary office solutions for our clients.” Sale of Benelux operations The sale comprises 100% of the shares in Samas Benelux and includes the transfer of all assets to the consortium for a cash consideration of EUR 5 million. The proceeds will for the most part be used to pay-off part of Samas’ debt, which brings total net debt to a level of approximately EUR 20 million.The pro forma full year 2008/2009 sales of the Benelux business amounted to EUR 71 million with a negative EBITDA. Taking into account the significance of this transaction for the continuity of the Benelux operations and after consulting its major shareholders, Samas has reached agreement on the transaction. The works council has advised positively on the transaction. The transaction results in a limited book profit. At the same time one of the consortium partners has been granted a conditional option with a limited exercising period to acquire Samas’ operations in Central and Eastern Europe.

Money back on old Ahrend products - part of Company’s sustainability policy

Wednesday 20 May 2009

Office furniture manufacturer Ahrend is offering its customers the opportunity of trading in their old Ahrend 220 office chairs for its modern successor, the Ahrend 230. The customer will receive a substantial discount on the new chairs on top of money back for the old ones. The traded-in chairs will be refurbished and recycled to give it a new lease of life. This campaign forms part of Ahrend’s sustainability policy, which is aimed among other things at prolonging the life of Ahrend products. The Ahrend 220, known from the ‘letterbox’ in its backrest, is claimed to be the best selling office chair in Europe. More than a million have been sold since its launch in 1994. Henk Verkerke’s design was revolutionary at the time because this was the first chair to be produced on ecodesign principles. This means, for example, that the environmental load and recyclability of the materials used are taken into account from the initial design stage, and that efforts are made to keep energy consumption during the production process as low as possible. The ecodesigner also ensured that the product was easy to dismantle, and that it is upholstered with materials that do not place an unnecessary burden on the environment.

Herman Miller to cut dividend and consolidate manufacturing operations

Thursday 14 May 2009

Herman Miller, Inc.today announced further steps in its comprehensive and ongoing plan to reduce fixed costs and strengthen its balance sheet. The actions include a reduction in the company's quarterly cash dividend to 2.2 cents ($0.022) per share from the 8.8 cents ($0.088) that the company declared and paid in each of the past 9 quarters. The company said the new dividend rate will enable it to retain approximately $14 million annually. The company also commented that it has paid a dividend for more than 120 consecutive quarters. Also announced was a plan to consolidate manufacturing operations with the closure of its Integrated Metal Technologies (IMT) subsidiary in Spring Lake, Michigan. Under the plan, Herman Miller will retain existing production capacity and will enhance operational efficiency, with the majority of work and equipment moving to other newer, larger facilities in the area. Relocation is targeted to begin in August 2009, with the work completed and final closure targeted for spring 2010. The anticipated one-time cost for this action is $9 million to $12 million, with anticipated operational savings thereafter of $5 million to $7 million annually.

Europa picks up Eastlake businesses

Wednesday 13 May 2009

Europa has acquired the trade and assets of Work Facilities and Work Services, both part of Work Inc Group and recently put into administration. Europa, a privately owned FM business, operates across the UK employing 1,400 people and with its head office in Welwyn Garden City, Hertfordshire. Work Inc Group is a workspace solutions business. Its services include FM service delivery, furniture lifecycle management and, maintenance, moves and logistics, space planning and furniture supply. The take over pushes Europa’s annual turnover to nearly £100 million and sees the creation of a new business called Europa Workplace Solutions. Work Inc had “a strong trading history but the parent company has recently become a victim of credit crunch cash pressures”, according to a notice from Europa. The deal will see Europa re-financing the business and taking on key contracts and assets. According to a source close to the deal, a big factor in the businesses running into difficulty was the collapse of a “major banking client” which failed to pay for services. Work Inc employees were not being paid regularly and owed salaries and wages. But Europa has said it will meet all salary commitments for the 210 employees who will be transferring. The firms acquired by Europa were part of the Eastlake Work Group, as reported in FM World last week. A statement from the joint administrator PricewaterhouseCoopers had said that Work Facilities was not part of any selloff. The new Europa business will operate as a separate unit, Europa Workspace Solutions. It will continue to serve its existing clients and will enable Europa to offer additional services to its customers across a range of sectors. Greig Brown, chief executive of Europa said the deal gives Europa “some great complimentary services and expertise”. Brown noted that the while it was not a requirement of the deal, Europa has agreed to meet all outstanding salary commitments. “We want the Work Facilities and Services employees to stay with the business and help us grow it in the future and we believe this gesture will create a stable platform from which to take the company forward. We want motivated, committed employees who feel included in the business - that way we can grow together and deliver a great service that adds value for our customers." Europa regards the deal as a natural fit and an opportunity to take another step forwards in realizing its business strategy. In early 2008, Europa acquired UUFM, strengthening its capabilities and position in the utilities sector.

Herman Miller chairs on sale at John Lewis

Saturday 9 May 2009

A range of iconic chairs by internationally renowned office furniture company Herman Miller has been launched at the UK department store chain John Lewis which will be stocking a variety of products. Included in the collection is the award-winning Aeron, which was created by Herman Miller in the 1990s following extensive ergonomic research - the chair naturally adapts and adjust to people's individual shapes and postures. The Mirra comes with a range of adjustments to provide 'total back support', while the Celle encourages an even distribution of weight thanks to its pliable frame and is 99% recyclable. A number of Herman Miller products have been recognised for the quality of their designs, with the Aeron chair one of several from the company to have a spot in the permanent collection at New York's Museum of Modern Art. Most recently, its Ardea lighting solution won the 2009 red dot design award, a highly coveted international prize handed out by the Design Zentrum Nordrhein Westfalen in Germany.

Samas sells Swiss business

Wednesday 6 May 2009

Samas NV (Samas) today announced that it has sold its Swiss (SITAG) businesses to Dutch private equity firm Nimbus. The cash consideration for 100% of the shares in SITAG amounts to approximately EUR 9 million. The intention to divest SITAG was announced in 2008, following a study of strategic options and is necessary to further reduce group borrowings. In addition, taking into account current trading conditions, the continued uncertain outlook and its tight financial household, Samas is actively pursuing further strategic alternatives regarding its remaining activities in Germany, Central & Eastern Europe and the Benelux. This process is executed in close consultation with Samas’ lending banks and with current bank financing arrangements under review. The disposal of the Swiss (SITAG) business follows an earlier announcement made by Samas regarding the outcome of its study of strategic options in March 2008. The transaction includes the transfer of all assets of the Swiss business for a cash consideration of EUR 9 million which was paid today. The price is substantially lower than previously anticipated, but is considered a fair price taking into account the deteriorated economic climate and low interest for businesses in the office furniture market. The transaction results in a book loss of approximately EUR 10 million. In the financial year 2008/2009 pro-forma sales of the Swiss business amounted to EUR 25.9 million. The disposal involves a transfer of approximately 140 FTE. The agreement reached with Nimbus includes arrangements which facilitate future intensive cooperation between SITAG and Samas operations in Germany, Central & Eastern Europe and the Benelux.

Eastlake Group in Administration

Saturday 2 May 2009

A total of 500 jobs are at risk at workplace interiors firm Eastlake after the company fell into the hands of administrators. The East Kilbride-based business yesterday admitted three of its four subsidiaries had become insolvent due to customers cutting back on "discretionary spend". Eastlake, which is understood to employ around 180 staff north of the Border, previously supplied major companies including BP, Scottish Media Group and Aegon. No jobs cuts have been announced at present and the administrators, PricewaterhouseCoopers, said they hoped to sell the business as a going concern. A statement published yesterday by the administrator said: "The insolvencies were triggered by cash flow problems caused by customers delaying discretionary spend as a result of the general economic downturn." Bruce Cartwright, joint administrator and head of business recovery services at PricewaterhouseCoopers in Scotland, added: "With the support of key customers, we hope to trade the business for a period of time whilst a buyer is sought." Burdew Contract Furniture, which provided bespoke office furniture, and office design firms Eastlake Commercial Interiors and CM3 are the firm's subsidiaries which have been taken into administration. The company, which was established in 1975 as a small family run office supplies group, has rapidly expanded in recent years, growing to a turnover of around £70 million a year. Last year it merged with Work Inc Group, its biggest competitor, in an £8m deal funded by Royal Bank of Scotland. In 2006, it expanded into Northern Ireland, snapping up Calvert Morgan for £2m. Eastlake trades from offices in East Kilbride, Belfast, Wakefield, London, Manchester, Cardiff and Newcastle. The group's subsidiary facilities management company Work Facilities is not in administration. Reprinted from: The Scotsman

HNI (Hon) 1st Qtr Loss for 2009

Wednesday 22 April 2009

HNI Corporation today announced sales of $405.7 million and a net loss of $11.9 million or $0.27 per diluted share for the first quarter ending April 4, 2009. Included in first quarter results are charges related to the shutdown of its South Gate, California office furniture manufacturing plant and the disposition of several hearth retail and distribution locations. Net loss per diluted share for the quarter was ($0.20) on a non-GAAP basis when excluding restructuring charges. "We continued to confront highly challenging market conditions and took strong actions to reset our cost structure during the quarter. We made painful but necessary decisions, including the closure of our South Gate facility and transitioning out of five hearth retail and distribution locations. We also reduced day-to-day operating costs across our businesses. These actions along with better price realization allowed us to exceed our first quarter expectations," said Stan Askren, HNI Corporation Chairman, President and Chief Executive Officer.

Knoll Q1 beats profit expectations

Thursday 16 April 2009

Knoll Inc posted a better-than-expected quarterly profit, helped by cost-cutting measures, but the office furniture maker forecast a steeper decline in demand and sales. The company's shares, which had initially risen more than 15 percent, pared gains and were down 18 cents at $6.53 in midday trade on the New York Stock Exchange. "There is no doubt that we will see sequential and deeper declines in sales as we work through some of the larger projects still in our backlog," Chief Executive Andrew Cogan said on a conference call with analysts. Knoll's first quarter saw sales fall across all categories on lower demand. Net sales fell 21 percent to $212.6 million, while backlog of unfilled orders on March 31 was $163.8 million, a decrease of 19.9 percent. The decline in backlog implies that orders plunged 38 percent year-on-year to $174.7 million, compared with a 3 percent growth a year ago, Raymond James analyst Budd Bugatch said in a research note. Bugatch rates the stock "outperform." "Backlog will continue to decline until product demand improves with the economy or from our new product introductions," Chief Financial Officer Barry McCabe said on the call. Knoll reported a first-quarter profit of $9.5 million, or 21 cents per share, compared with $17.3 million, or 36 cents a share, in the year-ago period. Excluding restructuring charges, the East Greenville, Pennsylvania-based company earned 29 cents a share.

GGI Office Furniture acquires Selector

Wednesday 8 April 2009

GGI Office Furniture, the leading manufacturer of office furniture and seating, has announced the purchase of Selector Office Furniture. GGI’s Sales and Marketing Director Ray Bradbury says: “The completion of this acquisition represents a significant step for GGI to accelerate the growth of our office furniture business, and our strategy to become a total office furniture provider. "Dealer’s have been buying desking from us with increasing volumes since the launch of our Xpress programme last September. Selector joining our group shows the trade our commitment to expand our product portfolio, and our manufacturing base in the UK”. Selector Office Furniture will continue to operate from their production plant in West Yorkshire as a division of GGI Office Furniture.

Itoki to launch in US

Monday 6 April 2009

Itoki Design, a subsidiary of Itoki, one of the top ten contract furnishings manufacturers in the world - will make its debut at ICFF 2009. Award-winning industrial designer Jeff Miller will head the new venture as creative director along with Yoshi Konishi, the president. The company, which is based in New York, follows the parent company's model of quality production and good design, but will have its own distinctive personality. The collection is being billed as a cross-cultural endeavor and encompasses a blend of Japanese technology and know-how, European design philosophy and American manufacturing. As Miller puts it, "It's a wonderful blending of possibilities - a New York designer with European and international experience working with an established Japanese company. Furthermore, by producing the furniture domestically we create the opportunity to bring business to American manufacturers that are greatly feeling the effects of the economic downturn." Throughout its 100 years of existence Itoki has been highly regarded because of its success in balancing good design with price sensitivity; but its focus has been almost entirely on the domestic Japanese market. The idea for the creation of the subsidiary was the result of the company's desire to enter the US market. Previous efforts to export the already existing furniture line into the country proved to be price-prohibitive. According to Konishi, "For five years Jeff has designed furniture for the Itoki parent company. In my position as the company's US liaison, I worked closely with him and gained an appreciation for his design expertise. Throughout the partnership we began to see an opportunity for developing furniture specifically for the US and explored the idea of manufacturing here as well. We quickly saw that this would be an effective way to strengthen the Itoki brand in the market." Miller and Konishi will direct the design and product development process from New York, while also taking advantage of the intelligence and expertise the Itoki engineers and designers in Japan. Miller added, "The overarching goal is to be clever about production, doing simple things to create interesting, well-priced pieces. More importantly, each of our designs will be modern and streamlined and will include essential functional characteristics. While the designs in the collection are made with the contract market in mind, they seamlessly cross over into hospitality, retail and residential settings.

U.S. office furniture orders fall 32 percent in February

Thursday 2 April 2009

U.S. office furniture orders dropped about 32 percent to $625 million in February, while shipments fell 28 percent to $645 million, a trade group said. The Business and Institutional Furniture Manufacturers Association maintained its 2009 forecast of 26.5 percent decline in orders and 19.3 percent fall in shipments. BIFMA compiled its February report from 36 companies that account for about 73 percent of the industry's volume.

Steelcase's 4th Qtr Loss far exceeds expectations

Monday 30 March 2009

At the end of a rough year marked by rounds of job cuts and belt-tightening, Steelcase Inc. posted a fourth-quarter loss of $65.7 million Tuesday, with sales off 27.3 percent to $654.9 million. The world's largest office furniture company said restructuring costs came to $11 million in the quarter ended Feb. 27, and a noncash charge of $50 million added to the net loss. Excluding those two amounts results in an adjusted loss of about $4.7 million. Analysts polled by Thomson Reuters expected, on average, a loss of $2.2 million, or 1 cent per share. Such estimates typically exclude one-time items. The loss per share was 49 cents. For the year, analysts expected earnings of 60 cents per share. Steelcase missed that forecast, too, posting a 9 cent loss per share, or $11.7 million lost in 2009. Sales were $3.18 billion, down from $3.42 billion in 2008. "Fiscal 2009 was a year of tremendous volatility," CEO Jim Hackett said. "Uncertainty prevailed early in the year and in the second half, the full impact of the economic weakness affected industry demand." Last month, the company hit its North American work force with salary cuts of 5 percent or more and said it would end up to 900 jobs, both hourly and white-collar, in a bid to save as much as $30 million a year. It will also drop its matching contribution to employee retirement plans starting next month, and board members have reduced their annual compensation. In its third quarter, Steelcase said its profit dropped 99 percent, driven by slowing sales and higher costs to restructure. Across the industry, shipments this year are forecast to be off more than 19 percent while orders for office furniture are expected to drop by 26.5 percent, according to revised estimates in January from the Business and Institutional Furniture Manufacturers Association. Steep drops in white-collar employment in the U.S., rising office vacancy rates, and a chill in commercial construction are creating a rugged market for the nation's office furniture industry. The company employs 13,500 worldwide. The stock has traded in a 52-week range of $4.24 to $16.09. It hit its 52-week low the day third quarter results were released. Steelcase is discussing the results with analysts at 11 a.m. today in a webcast that will be replayed. Steelcase stock closed Monday at $5.06, down 54 cents, on the New York Stock Exchange.

Inventory of used office furniture rises In US as companies close

Sunday 15 March 2009

Chicago, IL - A new unofficial indicator is fast emerging as a barometer of the recession gripping the U.S. It is a rise in inventory of used office