By George C. Ford, The Gazette
Restructuring costs related to closing two plants and consolidating manufacturing diminished HNI Corp.’s second-quarter internet profit.
The Muscatine-dependent place of work furniture company posted web income of $ nine.seven million, or 21 cents per share for the quarter that ended June 28, down from 16 percent from $ eleven.4 million, or 25 cents for each share, in the identical quarter last yr. Web income fell .3 p.c to $ 509.one million from $ 510.7 million in the 2nd quarter of 2013.
In the course of the 2nd quarter, HNI introduced plans to near an office home furniture plant in Florence, Ala., and consolidate generation into present manufacturing amenities. The firm also notified the union representing the bargaining unit at its workplace furniture facility in Chicago of its tentative selection to shut the plant and consolidate manufacturing into an present facility.
HNI recorded $ four.8 million of restructuring and transition charges, of which $ three.four million had been incorporated in the price of revenue. The organization approximated that the plant closings will preserve $ eight.one million yearly beginning in 2015.
HNI recognized pretax goodwill impairment cost of $ eight.9 million throughout the second quarter. It also recognized a $ 1.3 million achieve on the sale of California air emission credits.
Excluding the restructuring, transition and goodwill impairment expenses, HNI’s had internet cash flow for every share of 39 cents for each share, a 39 per cent enhancement from the second quarter of 2013.
HNI Chairman and CEO Stan Askren stated the company was happy with its next-quarter financial final results.
“Our place of work household furniture businesses generated robust revenue development even with a income lessen,” Askren mentioned. “Our hearth company sent significant revenue and profit progress in each new construction and remodel and retrofit channels.”