Samas Groep - Half Year Results 2008/2009

Wednesday 5 November 2008

Before the start of trading Samas N.V. (Samas) today announced its 2008/2009 first half year results on a continued operations (excluding Samas France) and fully consolidated basis. Samas’ financial year runs from 1 April until 31 March. Key points financial development first half year 2008/2009 •Year-on-year net revenue (fully consolidated) increased by 1% to €183.7 million. •Normalized EBITDA (fully consolidated) turned positive at €4.3 million due to strict cost and cash management (versus € 4.3 negative in first half of previous year). •Continued cost reduction programmes resulted in 8% lower cost base and a significantly smaller normalized operating loss (fully consolidated) of €2.4 million compared to €11.0 million year-on-year. Result realized with 230 FTE less at September 30 compared with one year ago. Net result (fully consolidated) came in at €12.7 million negative, for large part due to a (non cash) one-off book loss of €6.0 million related to the divestment of Samas France. •Financial position strengthened; compared to 31 March 2008 net debt decreased by €10.7 million to €37.2 million whereas solvency increased from 30.5% to 34.2%. Caution and alertness continue to be required given risks related to the economic environment as well as the tight financial household. Key points strategic development and organization. •Progress booked on both strategic and operational level aimed at creating a more compact and profitable Samas; Samas France divested as per 30 September 2008.

For sale: HNI jet

Saturday 18 October 2008

Muscatine-based HNI Corp. has put its corporate jet up for sale to cut expenses in response to sluggish economic conditions, laid off its flight crew and may face more layoffs in the future. “As a company we’ve seen a slowdown in business,” Gary Carlson, HNI’s vice president of member and community relations, said Wednesday. “That causes us to look at our expense structure in all of our departments to match sales with what you have for production and capability.” HNI, a leading manufacturer of office furniture, on Wednesday reported earnings of $19.5 million, or 44 cents a share, for its third quarter, which ended Sept. 30. That is 45 percent less than the $35.3 million in net income reported by HNI in the same three months of last year. For the nine months of its current fiscal year, HNI has earned $36.9 million, down 55 percent from the $82.8 million reported by the company in the same period of 2007. The company has posted sales in fiscal 2008 of $1.8 billion, down about 3 percent from the $1.9 billion reported by HNI in the same nine months of last year. “We will continue to adapt our businesses to the economic environment and are preparing for more uncertainty and potentially severe conditions,” Stan Askren, HNI chairman, president and chief executive, said in a statement. “We anticipate working through higher input costs in the fourth quarter and offsetting their impact by the beginning of next year,” he said. “We expect a weak and deteriorating economic environment to negatively impact our office furniture businesses ... Our response in these uncertain times is to take strong action to reduce operating expenses and eliminate structural costs.” Carlson confirmed HNI is trying to sell its 1991 eight-passenger Cessna 560. The jet was used to fly customers to Muscatine to meet with officials from HNI and its subsidiaries, Allsteel and HON. It has also been used to transport employees to meet with customers elsewhere. The jet is valued at approximately $3 million.

Herman Miller, Inc., Named 2008 'Corporation of the Year'

Friday 10 October 2008

Herman Miller, Inc., Named 2008 'Corporation of the Year' by the Michigan Minority Business Development Council October 10, 2008 [E-mail Page] [Print Page] The Michigan Minority Business Development Council (MMBDC) named Herman Miller as its "Corporation of the Year" in the commercial products sector at the MMBDC's annual awards dinner on October 8, 2008. Finalists for the award included Steelcase, Inc., and Xerox Corporation. "We are honored to be recognized for our commitment to creating an inclusive supply chain," said Kimberly Coffman, manager of Supplier Diversity at Herman Miller. "Herman Miller strives to create a better world through all aspects of its business and working with the MMBDC brings us one step closer to that goal." The 25th annual awards dinner, held at the Detroit Marriott, carried the theme, "Celebrating the Stars of Supplier Diversity," and featured Harriet Michel, the National Minority Supplier Development Council President, as the guest speaker.

Herman Miller launch new iconic chair - Embody

Thursday 2 October 2008

The chair, which Herman Miller will produce in Holland, MI, has a newly designed three-layer seating that evenly distributes weight and a back that adjusts to mimic the curvature of the spine. Perhaps the biggest difference you'll notice when sitting in an Embody chair is the back is narrower than most of what you see on the market today. The shape provides plenty of lumbar and thoracic support without restricting the shoulders, allowing a user to easily flex their upper body for greater comfort. Designed by the late Bill Stumpf, the designer of the Aeron chair who died in 2006, and his business partner, Jeff Webber, Embody's controls are simpler and more intuitive to use. Herman Miller's 'Embody' chair The chair is designed for workers who spend much of their time working at a computer and aims to better position a person at their work station for maximum comfort. "We have people in very incorrect postures, and then they try to adjust their technology to that," Barnes said. "What we want is to get you neutral, and then adjust the technology." Herman Miller even lays claim to Embody helping your health: The narrower back allows the chest cavity to open up so you to take in more oxygen while seated; and the seating eases stressful contact points, allowing for better blood circulation in your lower legs. Herman Miller introduces Embody to the U.S. market this month, followed by Europe in January and Asia later in 2009. Perhaps the one potential drawback to Embody is its list price. Embody will list for $1,795, though you'll pay considerably less in a contract price. The Aeron chair, for example, lists for nearly $1,300, but you can find it selling at a contract price of about around $600. Even with the contract discounts, Embody isn't cheap. Herman Miller heard "big time" concerns about Aeron when it was introduced in 1994 at a price that was 15 percent to 20 percent more than anything else on the market, Embody Program Manager Bob Nyhuis said. But performance ruled, he said, and Aeron went on to become an American classic and set a new price point for market acceptance. Nyhuis believes Embody will, too, particularly among a target market of early adopters who "always want the coolest thing, always want the latest chair, and they want the best. "We believe the market is ready for this chair, and the market is ready for this chair at this price point," Nyhuis said. And as far as replacing the Aeron? No way, Nyhuis said. "There will always be a place for Aeron. It's iconic," he said. "It's developed a life of its own."

More information.

Samas divests French operations

Wednesday 1 October 2008

Samas NV (Samas) has reached agreement with local management on a management buy out (MBO) of its French operations. The transaction will considerably improve Samas’ financial position. Furthermore, the transaction is in line with Samas’ objective to simplify its business model and focus on those regions in Europe which offer Samas the best earnings recovery potential. The French operations represent approximately a quarter of group sales and include the brands Roneo and Sansen. The transaction relates to 90% of the shares and involves the transfer of all assets, external debt and other liabilities of the French business. As a consequence Samas’ debt will decrease and the solvency ratio will rise above 35%. Coen van der Bijl, chairman of the Executive Board and CEO of Samas: “The divestment of our French operations is an important step in creating a new compact Samas which is required for a better future. It will also considerably improve our debt position and will bring our solvency to a level of more than 35%. This spin-off is consistent with our strategy aimed at reducing complexities and simplifying the business model. Management attention can now be focused on those regions in Europe which offer Samas the best potential for improvements. In the Benelux and Germany we already have leading market positions and the right scale to benefit from new opportunities. In Central and Eastern Europe we see considerable growth potential. We can now allocate free cash flow and management attention more effectively across these key regions.”

Herman Miller, Inc., Listed Among America's Safest Companies

Saturday 27 September 2008

Herman Miller has been recognised by Occupational Hazards magazine as one of America's Safest Companies (ASC). The achievement is a result of survey responses from industry professionals who selected the company for its occupational health and safety philosophy and programs and its participation in the Occupational Safety and Health Administration's Voluntary Protection Program. "This recognition is a testament to the commitment and passion all of our employees demonstrate for making Herman Miller a safe work environment," said Ken Goodson, Executive Vice President of Operations. Regardless of size or industry, the ASC program is open to companies that can clearly demonstrate that their safety process includes support from management, involvement of employees, innovative solutions to safety challenges, injury and illness rates lower than the average for their industries, and comprehensive educational programs for employees about safety-related topics.

Herman Miller Sales Fall, Orders Grow

Thursday 18 September 2008

Herman Miller, Inc., Wednesday announced results for its first quarter of fiscal year 2009. Earnings per share were $0.60, an increase of 11.1% over the same period in the prior year. Operating earnings improved to 11.8% of sales from the prior year same period 10.9%. Significant increases in raw material costs were offset by a 7.0% year-over-year reduction in operating expenses. Sales declined 2.6% from the prior year, primarily from softness in the U.S. Office Furniture market, although orders increased 10.6%. Sales for the quarter were $479.1 million. North American sales were $395.9 million, reflecting a 2.6% decrease from the same period in the prior year, and non-North American sales for the quarter were $70.1 million, reflecting a 4.5% decrease from the prior year. Orders for the quarter were $535.2 million, an increase of 10.6% from a year ago, with North American orders increasing 8.9% and non-North American orders up 9.6% over the same period a year ago. The strong order entry resulted in an ending backlog of $332.4 million, an 18.8% increase over the prior year. Brian Walker, Chief Executive Officer, stated, "We had the foresight last year to realign our resources in preparation for the potential of rough waters ahead. As a result of those actions, we were able to continue to deliver solid financial results to our shareholders despite the challenges of softening demand in the U.S. and dramatic increases in commodity costs. We also continue to make excellent progress on our strategic initiatives to diversify and transform our business into a global company centered on performance innovation." "This is the first time in over four years that we reported a decline in sales. Although the decline was modest, it was not unexpected and we are encouraged by the strength in order entry during the quarter," said Curt Pullen, Chief Financial Officer. "We are pleased to have recorded increased orders in both our North American and non-North American segments, even after consideration for what we believe to be a pull-forward effect of the recently implemented price increase. The decline we experienced in sales outside North America was primarily driven by the timing of several large projects." Gross margin decreased slightly to 33.9% of sales from 34.1% in the prior year period. Commodity prices increased significantly through the quarter reflecting current market conditions and resulted in a year-over-year unfavorable impact of approximately $9 million. This negative impact was partially offset by reductions in overhead spending and continued manufacturing process improvements. Operating expenses of $105.8 million declined by $8.0 million to 22.1% of sales, a 100 basis point improvement, compared to the same period in fiscal 2008. This improvement is primarily attributable to the restructuring actions taken in the second quarter last year. Sequentially, operating expenses decreased from 22.2% in the prior quarter, reflecting the spending increase in the prior quarter related to NeoCon, the industry's annual trade show. Pullen concluded, "Once again we were able to generate nearly 12% operating income, notwithstanding the loss of volume leverage and the large increases in commodity costs. These results demonstrate our commitment to continuous improvement, our overall focus on cost management and the diversification of our revenue base. We know that next quarter will be just as challenging and while certain commodity costs may have leveled off, they remain well above year-ago levels and are still working their way into our product costs. Offsetting this, to some degree, will be the positive impact of our recently implemented price increase. Additionally, just after quarter's close, we completed our previously announced $200 million Accelerated Share Repurchase program and retired an additional 2.1 million shares of stock on September 9." The effective tax rate for the quarter was 35.0%, down slightly from the prior quarter rate of 35.1% but up from the previous year's first quarter rate of 33.5%. The expiration of the U.S. R&D tax credit contributed to the higher year-over-year tax rate. The company's cash position at the end of the quarter was $147.8 million. Cash flow from operations for the quarter totaled $3.9 million compared to $31.8 million for the same period last year. The current quarter's operating cash flow reflects a working capital use of funds due primarily to reductions in accruals for the payment of prior year incentives. Capital spending for the quarter was $8.2 million compared to $8.9 million for the same period last year. Looking forward, the company expects second quarter sales to be in a range of $490 million to $515 million. The company estimates earnings per share to be in a range of $0.59 to $0.66. These estimates reflect both a challenging U.S. demand picture and the rising commodity costs previously discussed, offset partially by the favorable impacts of the price increase and a lower share count. Brian Walker, president and CEO, noted, "We remain very confident in the long-term success of our business model and our strategy to diversify and grow our product portfolio as well as the markets we serve. Signs of our continued success were evidenced in the financial results this quarter and in the execution of a new distribution alliance that will significantly expand our reach and product offering in China. We haven't stood still back home either. This quarter we entered into a new channel agreement in the retail market that will begin to bear fruit in the second quarter. We also have a development queue filled with innovative, problem-solving designs that will be further demonstrated with the launch of the Embody(TM) chair this fall. Looking ahead, we remain focused on performance and innovation in every aspect of the business."

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