MUSCATINE, Iowa - On the eve of NeoCon, commercial furniture manufacturer HNI Corporation (Hon, Allsteel, Gunlocke, et.al.) increased earnings guidance, but forecast a drop in sales, for its second quarter and fiscal year 2016.
HNI said it now expects to report a sales decrease of 6 to 8 percent versus the 2015 period; previously it forecast a decrease of 4 to 7 percent. But by controlling costs HNI says it will raise its earnings per share.
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ARTICLE HNI wins tax breaks on latest investment HNI's latest expansion and renovation plans continue to move forward, with the office furniture giant being granted tax benefits on the estimated $17.8 million capital investment. |
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"We expect to deliver better than projected earnings driven by outstanding operational execution, material and operations productivity, and strong returns on prior investments," said Stan Askren, HNI Chief Executive Officer. "Our businesses are competing well and are positioned to deliver significant long-term profitable growth,"
HNI has been aggressively investing in manufacturing capacity, with projects at a laminate facility totaling $30 million and an additional $17.8 million in investments in Muscatine.
Earlier, during a first quarter earnings call, HNI said its "supplies-driven" office furniture sales would be up 2%, to down 2%, or down 1% to 5% organically. Sales in our remaining office furniture businesses are forecast to be down 9% to 13% against very strong prior year comparisons in a challenged China market. The company also said it bought OFM Inc., an office furniture catalog sales firm, and is still in the process of implmenting BST human resource management software.
Full year sales will decrease 1 to 3 percent over 2015, an improvement over a previously forecast sales decrease of 2 to 4 percent.
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