Published in Breaking News

‘Mixed demand’ disrupts Herman Miller’s third quarter sales

BY Wednesday, March 22, 2017 04:51pm

ZEELAND — Herman Miller Inc. closed the third quarter of its 2017 fiscal year with sales down slightly compared to the previous quarter, missing analysts’ expectations.

The Zeeland-based office furniture manufacturer generated $524.9 million in sales in its third quarter, which ended on March 4. That’s a 2-percent decrease compared to the $536.5 million the company reported in the prior year.

Despite the decrease in sales, new orders reached $543.2 million in the fourth quarter, up nearly 7 percent compared from the $508.8 million the company reported a year ago.

“While demand patterns across our business remained mixed this quarter, we were particularly pleased to see a marked improvement in the level and pacing of new orders within our North American Contract and Consumer business segments, both of which posted strong growth over the third quarter of last year,” said CEO Brian Walker in a statement.

Herman Miller reported net earnings of $22.5 million, or 37 cents per diluted share, in the quarter, a 19-percent decrease compared to $27.9 million or 46 cents per diluted share the company reported a year ago. Adjusted for restructuring charges and a gain from a dealer divestiture that was recognized in the period, the company said earnings would have been 39 cents for share for the quarter.

Herman Miller expects to generate sales in the fourth quarter between $575 million and $595 million, according to a statement. It forecasts earnings per share to range between 53 cents and 57 cents per diluted share.

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