HNI Corporation has announced sales of $432.8 million for the second quarter, ending July 2, 2011, were up 8.7% compared to the previous year. However, high material costs meant that net profit for the office furniture and hearth manufacturer was down 17.7% to $4.6 million.
"We executed well and delivered solid results for the second quarter. Office furniture sales growth was led by continued double-digit increases in our contract and international businesses. Strong performance in the remodel-retrofit market drove growth in our hearth business. Overall, top line growth and profitability met our expectations, but operating income was lower year over year due to increased material costs, unfavorable mix, and lower price realization," said Stan Askren, HNI Corporation Chairman, President and Chief Executive Officer.