June 2007 -- Office furniture manufacturer Herman Miller Inc. increased profit by 46% in 2006 and boosted net sales with the help of an additional week of operations on the company's fiscal calendar. Net earnings totaled $99.2 million in 2006, while earnings per share increased 51% over 2005 to $1.45.
Net sales totaled $1.74 billion, and orders increased 15.1% to $1.77 billion, according to a company statement. Gross margins improved nearly a full percentage point to 33.1% of sales, driven mainly by prior pricing actions and the leverage of overhead gained from higher volume. Cash generated from operations totaled $150.4 million compared with $109.3 million in 2005. Capital spending for the year was $50.8 million compared with $34.9 million in 2005.
The company is on track to meet its 2010 goal to double sales, according to CEO Brian Walker. "Our intent, after adjusting for the extra week of sales, is to do that again in 2007 through the investments we have made in new products and new markets," said Miller in a June 29, 2006, statement. "Herman Miller employee-owners have worked intensely during the past year to accomplish these results. I'm personally grateful for everyone's efforts and confident that we are well positioned for further success."
