Office furniture sales at US-based manufacturer HNI fell by 3.4% in the second quarter.
Q2 sales at the division were $409.5 million, a decline of $14.4 million (3.4%) versus the same quarter last year. Around $5 million of the drop was attributed to closing or divesting small office furniture companies, and the organic decline was 2.2% – mainly due to lower revenue from the supplies-driven business.
Office furniture operating profit was down 6.4% as reported to $18.7 million, but this included a $0.9 million restructuring charge. Adjusted operating profit fell 3.5% to $19.7 million and adjusted operating margin was flat at 4.8%.
“As we look at the second half of the year, our operational cost efforts are ramping up and will deliver significant benefits,” commented 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.”
Q2 sales at the division were $409.5 million, a decline of $14.4 million (3.4%) versus the same quarter last year. Around $5 million of the drop was attributed to closing or divesting small office furniture companies, and the organic decline was 2.2% – mainly due to lower revenue from the supplies-driven business.
Office furniture operating profit was down 6.4% as reported to $18.7 million, but this included a $0.9 million restructuring charge. Adjusted operating profit fell 3.5% to $19.7 million and adjusted operating margin was flat at 4.8%.
“As we look at the second half of the year, our operational cost efforts are ramping up and will deliver significant benefits,” commented 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.”
