Hon Furniture Parent Reports Strong Second Quarter in 2014

By Alex Keown | Posted: 07/18/2014 1:44PM

 

MUSCATINE, IA -- The second quarter was a positive one for HNI Corporation, which reported $509.1 million in sales and a net income of $9.7 million for the quarter which ended June 28.

HNI Corp./The Gunlocke Co.

Officials for HNI, the parent company of Hon Office Furniture, attributed the strong quarterly results to strong growth in their hearth manufacturing in large part due to a boost in new home construction as well as renovations. Sales increased by 15 percent, or $11.2 million. Office furniture showed profit growth during the quarter, even though sales were down some, officials said. Second quarter sales for the office furniture segment decreased $12.7 million or 2.9 percent to $423.4 million.

“We delivered strong results during the first six months of the year, and I remain positive about our ability to grow sales and profits for the remainder of the year. We continue to aggressively invest for long-term profitable growth, and I remain confident our investments are delivering shareholder value," says HNI CEO Stan Askren.

Sales for the first six months of 2014 increased $8.3 million, or .9 percent, to $961.3 million compared to $953 million in 2013. Early third-quarter reports show sales are up more than 2 percent from this time last year.

During the second quarter HNI closed an office furniture facility in Florence, AL and consolidated production into existing manufacturing facilities. During the second quarter the company also began looking at its office furniture facility in Chicago, pending negotiations and consultation with the union. Production would be consolidated with facility. The tentative decision to close the Chicago facility, along with market factors, was identified as a triggering event for purposes of goodwill impairment testing, officials said. Closing the two facilities will save HNI an estimated $8.1 million annually beginning in 2015.

 

 

About the Author

Alex Keown WoodworkingNetwork

Alex Keown

Alex Keown is a freelance journalist living in Bloomingdale, IL. Alex, a native of North Carolina, spent many years writing for community publications across his home state and suburban Chicago.  keown.alex@gmail.com


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