Herman Miller Q1 Profit Rises, Outlook Strong

(RTTNews) - Office furniture maker Herman Miller Inc (MLHR), Wednesday reported an increase in profit for the first quarter, driven mainly by a nine percent growth in sales. Earnings for the quarter came in line with Wall Street estimates, while sales trumped expectations. Moving ahead, Herman Miller provided a strong outlook for the second quarter.

Michigan-based Herman Miller's first-quarter profit improved to $25.2 million or $0.42 per share from $22.5 million or$0.38 per share last year.

Excluding special items, adjusted earnings for the quarter rose to $0.47 per share from $0.43 per share last year. On average, four analysts polled by Thomson Reuters expected earnings of $0.47 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the first quarter rose 8.9 percent to $509.7 million from $468.1 million a year ago. On an organic basis, which adjusts for the impact of acquisitions and divestitures and foreign currency translation, sales increased 5 percent from last year. Analysts had a consensus sales estimate of $505.27 million for the quarter.

Sales at the company's key North American segment inched up 0.9 percent to $321.1 from last year. Sales at ELA segment, or international sales, were $95.4 million, or up 16.9 percent, while its Specialty segment rose 5.0 percent to 54.6 million.

Gross margin for the period inched up to 36.4 percent from 36.3 percent last year, while operating margin edged down to 8.3 percent from 8.4 percent last year.

Chief Executive Brian Walker said, "This quarter we delivered solid financial performance highlighted by strong sales and order growth and improved gross margins. We also made important progress executing on our strategic priorities."

Looking forward to the second quarter, Herman Miller expect adjusted earnings of $0.50 to $0.54 per share and net sales of $550 million to $570 million. Analysts currently expect earnings of $0.49 per share on revenues of $542.20 million for the quarter.

MLHR closed Wednesday's trading at $30.87, up $0.49 or 1.61%, on the Nasdaq. The stock further gained $0.57 or 1.85% in the after-hours trade.