HNI sees dip in office furniture sales
July 26, 2019 | 11:18 am CDT
MUSCATINE, Iowa - HNI, the fourth-largest contract furniture maker on the FDMC 300, has seen a dip of 3.4 percent in its second-quarter office furniture sales.
Q2 furniture sales were $409.5 million, a decline of $14.4 million over the same quarter last year. The company attributed $5 million of the decline to closing or divesting small office furniture companies. Office furniture profit was down 6.4 percent to $18.7 million.
“As we look at the second half of the year, our operational cost efforts are ramping up and will deliver significant benefits,” said HNI CEO Jeff Lorenger. “We are also seeing improved second half demand, driven by strong sales growth in our contract and e-commerce office furniture businesses. We expect our supplies-driven business to stabilise in the second half.”
HNI makes desks, credenzas, filing/storage, office systems, office chairs, bookcases, conference tables, home office furniture and glass walls. The company has 8,500 employees and reported sales of $1.706 billion in 2018. Ten manufacturing locations include Cedartown, Georgia; Mt. Pleasant and Muscatine, Iowa; and Wayland, New York. The company runs many divisions, including Allsteel, Gunlocke, HON, HNI International, Maxon, Paoli, Artcobell, HBF, Lamex, and bpergo.
Allsteel and HNI were recently hit with a third gender-based wage discrimination lawsuit.
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