Published in Breaking News

North American market, improved margins spurs Herman Miller’s third quarter

BY Thursday, March 17, 2016 01:58pm

ZEELAND — A positive North American market continued to drive sales in Herman Miller Inc.’s (NASDAQ: MLHR) third quarter.

The Zeeland-based office furniture manufacturer closed its third quarter, that ended Feb. 27 with sales of $536.5 million, an approximate 4-percent increase from the same period last year, according to a statement. Herman Miller reported net earnings of 46 cents per share in its third quarter, compared to 35-cent earnings per share during the same period in the prior year.

Third quarter sales in the company’s North American segment grew 5.6 percent over the previous year to $312.7 million.

“We are particularly pleased with the continued strength of our North America business, demonstrating the clear impact of our investments in new products, refreshed showrooms, and solutions-based selling approach,” said CEO Brian Walker in the statement.

At the same time, Herman Miller saw sales in both its Europe and Latin America and speciality markets increase by 1.6 percent and 8.3 percent, respectively to $98.8 million and $54.7 million. Sales in the company’s consumer segment fell 3.3 percent to $70.2 million.

Herman Miller also improved its consolidated gross margin to 38.7 percent in its current third quarter, compared to the 36.9-percent consolidated gross margin it posted during the same period the previous year.

Executives at Herman Miller cite a variety of factors including “supportive” commodity costs, favorable product mix and improvements to operational efficiencies as drivers for the increased margin, said CFO Jeff Stutz in the statement.

Read 1853 times Last modified on Wednesday, 23 March 2016 12:36
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