EAST GREENVILLE, Pa. (AP) -- Knoll Inc.'s fourth-quarter net income grew 61 percent but the office furniture maker's revenue declined, missing analyst expectations.
The office furniture maker also said that it expects a difficult first half of 2012, and shares dropped 54 cents, or 3.2 percent, to close at $16.33.
Knoll on Tuesday said that it posted net income of $17.4 million, or 37 cents per share, for the period that ended Dec. 31. That's up from $10.8 million, or 23 cents per share, earned in the same quarter in 2010. The most recent quarter included a $5.4 million benefit tied to a change in how the company handles pension and other post-retirement benefits.
While Knoll did not release a per-share measure of the impact of that change, Raymond James Equity Research determined Knoll earned 30 cents per share on an adjusted basis for the quarter.
Analysts anticipated the company would post earnings of 33 cents per share, according to data from FactSet.
Revenue fell 7 percent to $223.1 million from $239.8 million on weaker government business, fewer purchases from one commercial customer and softer European business. Analysts expected revenue of $240 million.
The company said that it expects a challenging first half of the year, but it believes that recent weak demand reflects a temporary downturn rather than a broad decline, and demand should improve later in 2012.
Knoll also announced Tuesday that it is acquiring two other companies, outdoor furniture maker Richard Schultz Design Inc. and felt supplier FilzFelt to expand its design portfolio. Financial terms were not disclosed.
The East Greenville, Pa., company said it earned $58 million, or $1.24 per share, in 2011, more than double the net income of $28 million, or 61 cents per share, posted in 2010. Revenue increased 14 percent to $922.2 million from $809.5 million.