MUSCATINE, IA -- Furniture manufacturer HNI Corp. reported sales of $527.5 million and net income of $17.6 million for the fourth quarter ended Dec. 29, 2012.
For fiscal year 2012, the maker of HON, Paoli, Allsteel, Gunlocke and other furniture brands, reported sales of $2 billion, a 9.3% increase from prior year, and net income of $49.0 million, a 6.5 percent increase from prior year.
HNI, which makes fireplaces and office furniture, said office furniture sales rose 10% to $1.67 billion. In 2011, HNI acquired educational furnishings firm Sagus International. In 2012 HNI acquired India's BP Ergo office furniture business, which operates as a standalone unit.
In the fall it was reported that HNI Corp. will spend $20 million expanding its Muscatine, IA office furniture manufacturing for laminate and panel production. A doubling of capital expenditures during its third quarter underscored HNI's investment.
"Office furniture sales growth was led by a solid increase in our supplies-driven business," said Stan Askren, HNI CEO in an earnings announcement. About half its office furniture is sld through contract; the balance through what it calls the "supplies channel" to small businesses. "Continued strong profit growth in our hearth business was led by substantial growth in the new construction channel."
Sales for the first quarter will be flat or may fall 5% Asren predicted, though earnings per share could reach $1.25 to $1.45, excluding restructuring charges and transition costs. For 2012 earnings per share were $1.07.