MUSCATINE, Iowa – HNI Corp. announced first quarter sales of $572.3 million – an increase of more than 18% over the same period last year.
On Thursday, April 28, the Muscatine-based office furniture manufacturer released its earnings report for the quarter that ended Saturday, April 2. According to HNI Corp., the company delivered positive price-cost, despite record levels of inflation during the quarter.
HNI Corp. reported net sales rose 18.2% over the year from $484.3 million in the first quarter 2021 to $572.3 million in 2022.
Net income decreased to $14.177 million in the quarter vs. $15.019 million a year earlier. Net income per diluted common share was 33 cents compared to 34 cents in the prior year.
“Our strong initiatives to improve long-term profitability are on-track and delivering results,” HNI Corp. Chairman, President and CEO Jeff Lorenger said in the earnings release. “These include pricing actions to improve price-cost, strategic growth initiatives, multiple business simplification actions, and effort to expand labor capacity.”
Net sales in the company’s Workplace Furnishings segment increased 16.6% to $353.1 million compared to the prior-year quarter. While net sales increased 20.8% to $219.2 million in the Residential Building Products segment from the prior-year quarter.
The company said capacity additions and pricing action benefits are expected to drive strong revenue growth along with accelerating profit improvement in the second half of the year.
“I remain optimistic about our opportunities to grow revenue and earnings despite inflationary pressures and a dynamic environment,” Mr. Lorenger said in the release.
HNI Corp. said it expects second quarter profitability to be near the 2022 first quarter levels.
Looking further ahead, Mr. Lorenger said the company expects “noteworthy improvement as 2022 progresses, driven by margin expansion in our Workplace Furnishing segment and strong growth in Residential Building Products.”