ZEELAND, Mich. (AP) — Office furniture and accessories maker Herman Miller Inc. said Wednesday that its fourth-quarter profit fell 30 percent as sales fell and it recorded a restructuring charge, wrote down the value of some of its brands and faced higher income tax expenses.
The company said sales of its high-end products fell almost 5 percent with dealerships closing and orders from government and health companies continuing soft.
The company earned $11.9 million, or 20 cents per share, for the quarter that ended June 2. That's down from $17.1 million, or 30 cents per share, a year earlier. Excluding one-time items, it earned 28 cents per share in the most recent quarter.
Herman Miller's total revenue slipped to $420.7 million from $441.5 million. It blamed the drop on its sale of some dealerships and on continued soft orders from government and health care customers.
Its $5.4 million in restructuring and impairment expenses in the quarter included $1.6 million related to closing a factory in Iowa and $4.6 million to reflect the declining value of certain health care product brands.
Analysts were expecting the company to report adjusted earnings of 32 cents per share on revenue of $433.9 million, according to FactSet.
CEO Brian Walker said the company finished the year with strong international sales and its highest gross margin percentage in 12 years.
For the year, the furniture maker earned $75.2 million, or $1.29 per share, up from $70.8 million, or $1.06 per share, the previous fiscal year. Its adjusted earnings rose to $1.37 per share from $1.09 per share last year, and its annual revenue rose to $1.7 billion from $1.6 billion.
The company said it will quadruple its dividend to 9 cents per share in October, up from its most recent dividend of 2.2 cents per share.
"Our performance throughout the fiscal year, including the substantial improvements we've made to the health of our balance sheet, gives us the ability to begin returning more cash to our shareholders," Walker said in a statement.
Shares of Herman Miller, based in Zeeland, Mich., rose 38 cents per share to close at $16.73 before the earnings report. The shares fell 10 cents after hours.
