June 2009 -- A rapid decline in customer demand took its toll on furnishings manufacturer Knoll Inc. in the first quarter of 2009, sending both sales and income into steep declines. Net sales for the quarter ended March 31, 2009, were $212 million, down 20.6% compared with sales in the year-ago period. Operating profit for the quarter was $16.8 million, compared with $31.9 million in the first quarter of 2009 and included restructuring charges of $6.2 million. Net income dropped by 45.1% to $9.5 million compared with the first quarter of 2008.
CEO Andrew Cogan said in the first-quarter earnings release that Knoll's strategy of diversifying its sources of revenue into high design content businesses had helped buffer results, and touted its new product pipeline.
In May Knoll also reduced its quarterly cash dividend to 2 cents per share, payable June 30, which represents a 10 cent-per-share reduction compared with what the company declared and paid in each quarter of 2008 and the first quarter of 2009.
