MUSCATINE, Iowa–HNI Corporation, Muscatine’s largest employer and the only locally-headquartered, publicly-traded company, reported its full fiscal year 2020 results on Monday, March 1. The company’s sales for all of 2020 totaled $1.955 billion, a decrease of 13% vs. the $2.247 billion of sales during 2019. Net income for all of 2020 totaled $41.9 million vs. $110.5 million of net income achieved during 2019. The company’s sales and income showed the impact of the COVID-19 pandemic, as demand lessened for the workplace furnishing products manufactured by the company.
While less well known locally, the company has diversified its product offerings over the past years and now ranks as a market leader in the hearth and fireplace manufacturing business. This product diversification served the company well in a challenging environment, as the demand for home improvement projects and new residential construction led to sales increases in the residential building products division. Full year 2020 sales for the building products division increased by 7.3% to $589.7 million. For full year 2020 the building products division accounted for just over 30% of the company’s overall sales.
Chairman, President, and Chief Executive Officer, Jeff Lorenger, commented in the company’s press release: “In 2020, our members adapted, stayed agile, and kept HNI strong in the face of challenging conditions. I am extremely proud of and grateful for the efforts of all HNI members. I have no doubt we are a stronger company because of what we experienced and how we performed this past year.”
The company continues to make investments to address the changing needs and desires of the marketplace. On Dec. 31, 2020, the company closed on its acquisition of Design Public Group, a leading e-commerce distributor of high design furniture for the office and home. Lorenger commented: “We are excited to reach this milestone and have the team at Design Public join HNI. Design Public brings a digitally native organization with skills and capabilities to help us accelerate our digital and e-commerce initiatives. This leading platform will support our traditional distribution models and allows us to better reach a broader consumer group that increasingly buys furniture online.”
On the company’s earnings announcement call, Lorenger commented, “We are optimistic about our enhanced competitive position and ability to drive profit growth.” He also reminded listeners that the company has never cut its dividend payment to shareholders.
As of mid-afternoon on Monday, March 1, the company’s stock price increased to trade at $37.85 per share or an increase of 6.35% from where it opened in the morning.