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Herman Miller Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: January 11, 2012 04:49PM
Herman Miller Inc. (MLHR) filed Quarterly Report for the period ended 2011-12-03.
Highlight of Business Operations:Operating earnings in the quarter were $40.7 million or 9.1 percent of sales, up $9.2 million from the prior year. The company did not incur any restructuring expenses in the quarter compared to $2.1 million in the second quarter of fiscal 2011. The prior year quarter included a $4.4 million favorable adjustment related to Nemschoff purchase contingencies.
For the first six months of fiscal 2012, net sales of $903.7 million increased $110.8 million, or 14.0 percent versus the prior year.The increase in net sales was broad-based across the business. Foreign exchange rate changes increased net sales by approximately $8.8 million in fiscal 2012 year-to-date.
Second quarter operating expenses were $111.4 million, or 25.0 percent of net sales, which is an increase of 20 basis points as a percent of net sales, and an increase of $9.2 million from the second quarter of fiscal 2011. Approximately $4.4 million of this increase relates to favorable adjustments made in the prior year period related to Nemschoff purchase contingencies. Much of the remaining increase was driven by variable expenses including royalties, warranty and sales incentives related to the growth in net sales between periods as well as an increase in employee wages and benefits. No restructuring costs were incurred in the second quarter of fiscal 2012, as compared to $2.1 million of restructuring costs included in the second quarter of fiscal 2011.
Operating earnings in the second quarter were $40.7 million compared to earnings of $31.5 million in the same period last year. As a percentage of net sales, operating earnings were 9.1 percent as compared to operating earnings of 7.6 percent in the prior year.
Net sales within the North American Furniture Solutions segment were up $14.1 million to $321.7 million in the second quarter, representing a 4.6 percent increase over the second quarter last year. Orders within the North American segment decreased by $45.7 million to $306.2 million compared to $351.9 million in the second quarter last year. The deconsolidation of the three dealers sold during fiscal 2012 lead to approximately a $10 million decrease in both net sales and orders during the current quarter within this segment.
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