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HNI: further drop in office furniture turnover

12.08.2019 − 

In the second quarter turnover in the office furniture business division of US office furniture manufacturer HNI Corp. decreased by 3.4% to US$409.5m. As had already been the case in the first three months of the year, development in this respect was adversely affected by the closure or sale of smaller office furniture companies. Adjusted to account for this effect to the value of US$5.0m, turnover generated with office furniture in fact only declined in organic terms by 2.2%. The group considers the decline to be due primarily to poor day-to-day business.

Total turnover of HNI decreased by 3.2% in the current reporting period to US$526.0m (543.6m). In addition to office furniture, the group also operates the hearth products business division, in which all fireplace-related activities are consolidated. In this area HNI also suffered a 2.7% decline in turnover during the second quarter to US$116.5m. In organic terms, turnover decreased by 2.3%.

Accumulated over the first half year, group turnover declined by 4.1% to US$1.005bn. The deterioration is due principally to the negative development in the office furniture division where turnover declined by 5.2% to US$763.0m. Following an increase of 1.4% in the first quarter, at US$242.5m turnover for the first half year in the hearth products sector was just 0.6% down on last year’s figure. The HNI key results figures also deteriorated. Operating profit, for example, decreased by 12.4% to US$26.9m in the first six months. Net profit increased even more significantly by 20.1% to US$16.8m compared to the corresponding period in the preceding year.

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