Herman Miller, Inc. (MLHR) has reported an 8.65 percent fall in profit for the quarter ended Dec. 03, 2016. The company has earned $31.70 million, or $0.53 a share in the quarter, compared with $34.70 million, or $0.57 a share for the same period last year. On an adjusted basis, earnings per share were at $0.54 for the quarter compared with $0.57 in the same period last year.
Revenue during the quarter went down marginally by 0.50 percent to $577.50 million from $580.40 million in the previous year period. Gross margin for the quarter contracted 91 basis points over the previous year period to 37.75 percent. Total expenses were 91.41 percent of quarterly revenues, up from 90.44 percent for the same period last year. That has resulted in a contraction of 97 basis points in operating margin to 8.59 percent.
Operating income for the quarter was $49.60 million, compared with $55.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $64.60 million compared with $69.80 million in the prior year period. At the same time, adjusted EBITDA margin contracted 84 basis points in the quarter to 11.19 percent from 12.03 percent in the last year period.
Brian Walker, Chief Executive Officer, stated "In the face of an uncertain global economic and geopolitical picture, we delivered on the adjusted earnings per share commitment that we established at the start of the quarter. While North America sales were below our expectations, our ELA, Specialty and Consumer businesses all delivered strong organic sales growth in the quarter. Our consolidated orders were lower than anticipated and reflect uneven demand patterns we're seeing across the broader industry. This was amplified by a particularly challenging growth comparison in our prior year second quarter."
For the third-quarter, Miller Herman projects revenue to be in the range of $520 million to $540 million. The company forecasts diluted earnings per share to be in the range of $0.31 to $0.35.
Operating cash flow improves
Herman Miller, Inc. has generated cash of $90.20 million from operating activities during the first half, up 23.22 percent or $17 million, when compared with the last year period.
The company has spent $77.30 million cash to meet investing activities during the first six months as against cash outgo of $34.70 million in the last year period.
The company has spent $30.30 million cash to carry out financing activities during the first six months as against cash outgo of $47.30 million in the last year period.
Cash and cash equivalents stood at stood at $67.70 million as at Dec. 03, 2016.
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