MUSCATINE, IA - Office furniture maker HNI Corp. (NYSE: HNI) sales rose 9.2 percent third quarter, to $550.9 million, though net income fell slightly, down $400,000 to $24.5 million for the period ended Sept. 29. Summer heat interrupted production.
"Growth in our supplies-driven and contract office furniture businesses softened," said Stan Askren, CEO, who said during a live presentation that government purchases declined, while business sales were "solid."
"Office furniture profits were negatively impacted by lower than expected sales and operational inefficiencies caused by extreme summer heat during our peak demand season," Askren said. "We are making operational improvements to ensure consistent, flawless execution during future periods of peak production."
Results included $800,000 in restructuring and transition charges with previously announced shutdown and consolidation of office furniture manufacturing locations. Capital expenditures during the first nine months were $44.7 million in 2012 compared to $20.2 million in 2011. The Corporation completed the acquisition of BP Ergo, a leading manufacturer and marketer of office furniture in India, during the third quarter of 2012.
HNI is the second largest office furniture manufacturer in the world with brands incuding HON, Allsteel, Gunlocke, Paoli, Maxon, Lamex, HBF, Artco-Bell, Midwest Folding Products, and LSI Corp.
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