Herman Miller fiscal 4th-quarter profit falls

ZEELAND — Furniture maker Herman Miller Inc. said Wednesday fiscal fourth-quarter profit fell 82 percent, hurt by weak demand for office furniture and restructuring charges.

Profit for the three months ended May 30 fell to $7.2 million, or 14 cents per share, from $39.5 million, or 71 cents per share last year. Excluding restructuring charges, net income was 20 cents per share.

Revenue fell 38 percent to $319.9 million from $519.1 million last year.

Analysts surveyed by Thomson Reuters, on average, predicted a profit of 18 cents per share on revenue of $339 million. Analysts estimates typically exclude one-time items.

Furniture makers, including Herman Miller, have suffered amid the consumer-spending drop-off and prolonged housing slump.

"Business levels this quarter reflect the economic slow down facing most industries today," said Greg Bylsma, chief financial officer, in a statement. However, he added orders were up 16 percent from the third quarter, indicating the rate of demand decline has slowed and has perhaps stabilized.

For the fiscal year, net income fell 55 percent to $68 million, or $1.25 per share, from $152.3 million, or $2.56 per share last year.

Revenue fell 19 percent to $1.63 billion from $2.01 billion a year ago.

Separately, Zeeland, Mich.-based Herman Miller said it will acquire Nemschoff Inc., for $32 million and 2 million Herman Miller shares, to expand its offerings in the health-care furnishings sector. Nemschoff shareholders may receive further payment depending on the performance of the company, as well as Herman Miller's share price, over the next two years.

Herman Miller also said it will retire up to $75 million of its outstanding 7.125 percent notes due 2011 as part of a modified Dutch Auction.

A modified Dutch auction tender offer lets stockholders indicate how many shares and at which price they wish to sell their shares, within a specified range.

Finally it changed its unsecured revolving credit facility to increase financial flexibility. It reduced its revolver to $150 million.

Company CEO Brian Walker said cost-structure changes it is making allow the company to grow amid the difficult retail environment.

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