MUSCATINE, IA - Furniture heavyweight HNI Corp. (NYSE: HNI), parent of Gunlocke, HON and Allsteel, reported sales of $432.8 million but rising costs cut into income, with slim operating come from continuing operations of $4.6 million for the second quarter ending July 2, 2011.
"Office furniture sales growth was led by continued double-digit increases in our contract and international businesses," said Stan Askren, CEO of HNI Corp., the second-largest office furniture manufacturer in the world. "Top line growth and profitability met our expectations, but operating income was lower year over year due to increased material costs, unfavorable mix, and lower price realization." HNI said operating profit fell decreased 21 percent $4.8 million.
Earlier this month HNI's The HON Company won a U.S. Air Force contract making it one of eight companies authorized to that military branch’s office seating needs. It has a similar agreement to supply the U.S. Navy. Last month HON announced a lifetime warranty, providing for full refund or replacement, for all products made since January 2011.
"Office furniture sales growth was led by continued double-digit increases in our contract and international businesses," said Stan Askren, CEO of HNI Corp., the second-largest office furniture manufacturer in the world. "Top line growth and profitability met our expectations, but operating income was lower year over year due to increased material costs, unfavorable mix, and lower price realization." HNI said operating profit fell decreased 21 percent $4.8 million.
Earlier this month HNI's The HON Company won a U.S. Air Force contract making it one of eight companies authorized to that military branch’s office seating needs. It has a similar agreement to supply the U.S. Navy. Last month HON announced a lifetime warranty, providing for full refund or replacement, for all products made since January 2011.
Have something to say? Share your thoughts with us in the comments below.