MUSCATINE, Iowa – Workplace furnishings maker HNI Corp. announced sales of $2.184 billion and net income of $59.8 million for fiscal year 2021. The year-end results compare to sales of $1.955 billion and net income of $41.9 million for the previous fiscal year. The Muscatine-based manufacturer announced its year-end and fourth quarter results in an […]
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MUSCATINE, Iowa – Workplace furnishings maker HNI Corp. announced sales of $2.184 billion and net income of $59.8 million for fiscal year 2021.
The year-end results compare to sales of $1.955 billion and net income of $41.9 million for the previous fiscal year. The Muscatine-based manufacturer announced its year-end and fourth quarter results in an earnings report released Monday, Feb. 28.
HNI also said net sales were up 7% in the fourth quarter to $602.9 million from year-ago levels of $562.14 million. Net sales increased 11.7% for the full year to $2.184 billion from $1.955 billion a year ago.
“In the fourth quarter, we continued to confront inflationary pressures, supply chain constraints, and labor shortages,” HNI Chairman, President and CEO Jeff Lorenger said in the earnings news release. “Through the dedication and effort of our members, we were able to battle through those headwinds and launch initiatives to improve our long-term profitability…”
Net income for the fourth quarter was $8.2 million compared to $22.57 million for the same period last year, respectively. Both the quarterly and fiscal earnings were for the period that ended Jan. 1, 2022.
Net income attributable to the company was $1.36 per diluted share for the year, compared to 98 cents in the prior year. For the quarter, net income per diluted share was 19 cents, compared to 52 cents per share in the same period last year.
In the Workplace Furnishings segment, HNI said the acquisition of Design Public Group (DPG) in the fourth quarter of 2020 increased sales by $10.9 million in the quarter and by $34.9 million in the fiscal year compared to their respective periods in the prior-year.
HNI, which celebrates its 75th anniversary this year, pointed to several actions taken in the quarter to drive long-term profitability in its Workplace Furnishings segment including:
- Business simplification – HNI exited a small office furniture brand and restructured an eCommerce business.
- Price-cost – HNI also implemented additional price increases across its brands to address inflationary pressures. As a result, it expects price-cost to be neutral in the current first quarter and to contribute to profitability in the second half of fiscal 2022.
- Labor capacity – HNI continued efforts to expand its workforce and capacity including a new startup seating manufacturing facility in Mexico.
The company’s Residential Building Products segment, which manufactures hearth products, reported that production output and revenue continued to be negatively impacted by labor availability, supply chain pressure, and COVID outbreaks. Despite the challenges, the segment posted a 30% increase in operating profit – reaching $142 million at year end.
HNI reported fourth quarter net sales in this Residential Building Products segment increased 6.5% from the prior year quarter to $209.0 million.
The company’s acquisition of multiple building products companies in 2020 and 2021 increased year-over-year sales $12.4 million.
“I remain optimistic about our opportunities to grow earnings and revenue,” Mr. Lorenger said in the release. He added that HNI ended the year “with a strong balance sheet and significant capacity to further deploy capital.”
Looking ahead, HNI predicts its first quarter profitability will be below levels generated in the same period the previous year.
“As we enter the next 75 years, our focus on members and customers will remain as will our ambition to be a good corporate citizen supportive of our communities and the environment,” Mr. Lorenger said.
