HNI Corporation lowers FY17 non-GAAP EPS $2.35-$2.55 from $2.40-$2.70
Consensus is for FY17 EPS $2.52. Full year organic sales are expected to be up 2%-5%. Including the impacts of acquisitions and divestitures, full year sales are expected to be down 2% to up 1%. Delayed cost savings and competitive pricing pressure are primarily driving the reduced outlook. The company said "We expect stronger demand in the second half. Our contract office furniture businesses continue to drive strong growth. Demand in our supplies-driven office furniture business is stabilizing, and we are seeing solid growth in our hearth business. We are in the midst of multiple transformations positioning our supplies business for long-term success, driving further business simplification, and improving our operational cost structure. We are confident our growth together with our demonstrated record of cost reduction will drive long-term profit improvement."