MUSCATINE, IA - HNI Corporation, the parent company HON office and hearth products, reported net income of $7 million on sales of $480.4 million for the second quarter. Profit and net sales were up 51% and 11% respectively.
Second quarter sales for the office furniture segment increased $45.9 million or 12.3% to $418.6 million driven by an increase in HNI's supplies-driven channel. Newly acquired Sagus International, a manufacturer of wood and laminated ieducational furniture, accounted for $25.1 million or 5.8% of the HNI's Q2 sales growth.
"Office furniture sales growth was led by continued double-digit increases in our supplies-driven business," said Stan Askren, HNI Corporation chairman, president and CEO. New construction helped the company's hearth business, Askren said.
HNI projects sales growth of 11% to 14% in the third quarter compared to same period last year.
"I remain positive about our markets and our ability to grow sales and increase profits in 2012. We continue to aggressively invest for long-term profitable growth," Askren said. "Our businesses are strong, competitive, and well-positioned in their markets, and the prospects for our businesses are encouraging."
Rich Christianson is Associate Publisher and Editor at Large of Woodworking Network. During his 25+ years covering the wood products industry, Rich has toured hundreds of manufacturing plants throughout North America, Europe and Asia. His reporting has covered everything from the state of the industry and impact of wood imports to technology and environmental issues. In his current capacity he is responsible for editing the daily Woodworking Network Update newsletter and coordinating events including the annual Cabinets & Closets Conference & Expo and Canada’s biennial Woodworking Machinery & Supply Expo.
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