Published in Manufacturing

Herman Miller reports strong sales, earnings gains

BY MiBiz Staff Wednesday, December 19, 2018 04:49pm

ZEELAND — Contract furniture manufacturer Herman Miller Inc. today reported strong quarterly sales and earnings gains.

The Zeeland-based Herman Miller (Nasdaq: MLHR) grew sales 7.9 percent for the September-to-October period to $652.6 million, up from $604.6 a year earlier.

Net income for the second quarter of Herman Miller’s present 2019 fiscal year increased 17.3 percent to $39.3 million, or 66 cents per share. That compares with $33.5 million, or 57 cents per share, in the second quarter of its previous fiscal year.

“Strong demand was a clear highlight of our results as we finished the quarter setting all-time records for quarterly net sales and order levels for our Company. Encouragingly, this growth was broad-based across our business segments,” CEO Andi Owen said in this afternoon’s sales and earnings release.

Orders during the quarter grew 11.6 percent and backlogged order increased 11 percent.

Herman Miller’s sales midway through the fiscal year grew 7.8 percent to $1.27 billion, and net income increased 12.9 percent to $75.1 million, or $1.26 per share.

The company for the present third quarter of the 2019 fiscal year expects sales of $615 million to $630 million, a 6.3 percent to 8.9 percent increase over the $578.4 million of a year ago, and net income of 59 cents to 63 cents per share.

“In our view, the overall macro-economic backdrop for our business is supportive for continued growth, although the ultimate resolution of global trade tensions remains an outlook risk for the business,” CFO Jeff Stutz stated. “That said, our strategic focus on profit optimization was designed to help mitigate the potential for inflationary pressures and our teams have line of sight to savings that can offset these pressures.”

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