MUSCATINE, Iowa, July 20, 2011 -- HNI Corporation (NYSE: HNI) today announced sales of $432.8 million and income from continuing operations of $4.6 million for the second quarter ending July 2, 2011. Net income per diluted share for the quarter was $0.10 or $0.11 on a non-GAAP basis excluding restructuring charges.
"We executed well and delivered solid results for the second quarter. Office furniture sales growth was led by continued double-digit increases in our contract and international businesses. Strong performance in the remodel-retrofit market drove growth in our hearth business. Overall, 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," said Stan Askren, HNI Corporation Chairman, President and Chief Executive Officer.
- Second quarter sales for the office furniture segment increased $29.9 million or 8.7 percent to $372.6 million driven by an increase in the contract and international channels offset by a decline in the supplies-driven channel.
- Second quarter operating profit decreased $4.8 million. Operating profit was negatively impacted by lower price realization, higher input costs, unfavorable mix and investments in strategic growth initiatives. These were partially offset by higher volume and lower restructuring costs.
Year-to-Date Results Consolidated net sales for the first six months of 2011 increased $67.2 million, or 8.8 percent, to $829.0 million compared to $761.7 million in 2010. Gross margins decreased to 34.0 percent compared to 34.2 percent last year. Income from continuing operations was $2.8 million compared to $1.5 million in 2010.
Earnings per share from continuing operations increased to $0.06 per diluted share compared to $0.03 per diluted share last year. Operating activities used $8.4 million of cash during the first six months of 2011 compared to generating $1.5 million of cash in the same period last year. Capital expenditures were $14.6 million in 2011 compared to $12.4 million in 2010. Discontinued Operations The Corporation completed the sale of a small, non-core business in the office furniture segment and a small, non-core component of its hearth products segment during 2010. Revenues and expenses associated with these business operations are presented as discontinued operations for all periods presented in the financial statements.
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