Herman Miller exhibits the Mirra 2 chair at a NeoCon trade show. Photo via fb.com
Herman Miller Inc. (NASDAQ: MLHR) has reported fourth quarter and fiscal year end results as of June 1, with FY2013 sales at $1.774 billion, an actual increase of 2.9 percent over FY2012.
However, the company’s fiscal year 2012 included 53 weeks of operations, so adjusting for that extra week, net sales in fiscal 2013 increased approximately 5 percent.
Net sales in the fourth quarter were $460 million, an increase of 9.3 percent from the quarter last year. New orders in the fourth quarter were $461.6 million, 4 percent higher than the prior year. Sequentially, net sales in the quarter increased 8.6 percent from the third quarter, while orders improved 20.8 percent over the same period.
Fourth quarter diluted earnings per share were 40 cents, compared to 20 cents in the same quarter last year. The earnings were reduced by expenses associated with the termination of Herman Miller’s domestic defined benefit pension plans. Excluding these expenses, adjusted diluted earnings per share in the fourth quarter totaled 43 cents — up 53.6 percent from a year ago.
Diluted earnings per share in fiscal 2013 and 2012 were $1.16 and $1.29, respectively. Excluding restructuring and legacy pension expenses, adjusted diluted earnings per share were $1.47 and $1.37 in fiscal 2013 and 2012, respectively.
Brian Walker, CEO of Herman Miller, said the fourth quarter earnings “were fueled by top-line growth and strong margins, driving a significant increase in adjusted earnings per share. Beyond this strong financial performance, we advanced and accelerated our strategy with the acquisition of Maharam. This acquisition creates a highly complementary and leading presence for us in the margin-rich textiles and wall coverings categories, with further opportunities to extend Maharam’s reach into new consumer and international markets. The acquisition was followed by this month’s public introduction of our Living Office vision and the unveiling of multiple new and innovative designs for the office landscape.”
Sales in Herman Miller’s North American business were $311.5 million in the fourth quarter, up 8.9 percent from the prior year. New orders in the quarter totaled $316.2 million, a decrease of 1.5 percent from the same period last year. Adjusting for the impact of dealer de-consolidation, segment orders were up approximately 1 percent on a year-over-year basis.
The non-North American business had net sales of $99.1 million for the quarter, representing an increase of 2.1 percent from a year ago. The growth was driven by the company’s acquisition of POSH Office Systems Ltd., which contributed only a partial quarter of revenue in the fourth quarter of fiscal 2012. New orders in the quarter were $93.3 million, up 11.5 percent on a year-over-year basis.