Herman Miller Q1 Profit Rises - Update

(RTTNews) - Office furniture maker Herman Miller Inc. (MLHR), Wednesday reported an increase in profit for the first quarter, driven primarily by revenue growth and stronger margins.

Michigan-based Herman Miller's first-quarter profit rose to $22.5 million or $0.38 per share from $20.0 million or $0.34 per share last year.

Adjusted earnings for the quarter improved to $0.43 per share from $0.37 per share last year. On average, four analysts polled by Thomson Reuters expected earnings of $0.39 per share for the quarter. Analysts' estimates typically exclude special items.

Herman Miller's revenues for the three-month period grew 4.1 percent to $468.1 million from $449.7 million last year. Analysts estimated revenues of $465.43 million for the quarter.

North American segment sales, the biggest contributor to revenues, dropped 0.7 percent to $318.2 million. Sales at the non-North American division declined 13.7 percent to $81.6 million, while specialty and consumer segment sales surged 96.3 percent to $68.3 million.

Chief Executive Brian Walker said, "Sales and order activity was mixed across our different business segments this quarter. Our North American contract business continues to face the headwind of declining federal government orders. Additionally, sales in key markets outside the U.S. - including the Asia Pacific region - fell short of our forecasts this quarter. However the contrasting order growth in these markets was encouraging. Finally, the momentum of our Specialty and Consumer segment remains a positive growth influence overall, particularly as it relates to Maharam and our consumer business."

Gross margin for the period improved to 36.3 percent from 33.3 percent last year, while operating margin rose to 8.4 percent from 7.6 percent.

Looking forward to the second quarter, Herman Miller expects to report a net loss of $1.43 to $1.39 per share, adjusted earnings of $0.38 to $0.42 per share and net sales of $460 million to $475 million.

Analysts currently estimate earnings of $0.46 per share on revenues of $492.9 million for the quarter.

MLHR closed Wednesday's trading at $27.03, up $0.09 or 0.33%, on the Nasdaq. The stock, however, declined $0.28 or 1.04% in the after hours.