HNI 3Q income falls, but results beat estimates

HNI posts 9 pct drop in 3rd-qtr income, but shares climb after hours as results beat estimates

• On 6:46 pm EDT, Wednesday October 21, 2009

MUSCATINE, Iowa (AP) -- HNI Corp., which makes furniture and fireplace products, said Wednesday its third-quarter income fell 9.1 percent, but shares jumped in after-hours trading as the results breezed past analyst estimates.

The company said it earned $17.6 million, or 39 cents per share, during the three months ended Oct. 3. Net income reached $19.5 million, or 44 cents per share, in the same period last year.

Excluding restructuring and transition costs, the company earned 47 cents per share. Sales tumbled 32 percent to $454 million from $663.1 million.

Analysts expected a smaller 26 cents per share in earnings on sales of $442.5 million, on average, according to a survey by Thomson Reuters. Such estimates typically exclude one-time items.

That sent shares climbing $1.66, or 6.8 percent, to $26.10 in after-hours trading. The stock lost 4 cents to close at $24.44 during regular trading.

The company said sales in its office furniture segment fell 32 percent to $379.9 million. Sales of fireplace products slid 27.7 percent to $74 million.

"We increased profitability and generated almost twice as much operating cash flow during the quarter despite the challenging market," said Stan Askren, HNI's CEO, in a statement.

The company said it expects seasonal demand in the fourth quarter to dissipate, resulting in revenue below third-quarter levels.

Buzz up!