June 2007 -- HNI reported sales of $609.2 million, which was a decrease of 5.6% from first quarter 2006. Income from continuing operations was $20.7 million for the quarter ending March 31, 2007.
"Overall, combined results were in line with our first quarter expectations. Operating cash flow was strong. Our hearth segment experienced the impact of the declining housing market as expected while actions taken to right size the cost structure contributed to higher than anticipated profitability. Our office furniture business did not perform as anticipated as soft orders in the supplies driven channel resulted in lower overall sales growth and profitability," said Stan Askren, CEO on April 19, 2007.
The company reported that it had decided to sell a small, non-core component of the office furniture segment. During the first quarter this segment increased $10.2 million to $497.9 million as $14.7 million of incremental sales from acquisitions offset lower sales from the supplies driven channel.
In the hearth products segment first quarter net sales decreased $46.6 million, while acquisitions completed during 2006 contributed $0.8 million.
