Herman Miller, Inc. announced results for its fourth quarter ended June 2, 2012. The company reported net sales in the quarter of $420.7 million; a decrease of 4.7% from the fourth quarter of fiscal 2011. New orders in the fourth quarter, which totaled $443.8 million, were down 1.0% on a year-over-year basis.
The results in the prior year fourth quarter include sales and order activity associated with dealerships the company has since sold. Excluding the impact of dealer de-consolidations, net sales decreased 1.2% and orders increased 2.5% in the fourth quarter of fiscal 2012. On a sequential quarter basis, net sales and orders in the fourth quarter increased 5.2% and 23.1%, respectively, from the third quarter level.
Herman Miller reported fourth quarter diluted earnings per share of $0.20. This compares to $0.30 per share reported in the same period of fiscal 2011. Adjusted diluted earnings per share, which excludes the impact of restructuring and impairment expenses recorded in the period, totaled $0.28 in the fourth quarter of fiscal 2012 compared to $0.30 in the prior year.
The results in the fourth quarter and full fiscal year reflect effective income tax rates of 53.4% and 37.1%, respectively. By comparison, Herman Miller’s fourth quarter and full year effective tax rates in fiscal year 2011 were 36.4% and 30.9%, respectively. A lower than anticipated manufacturing deduction, expenses associated with contingent purchase consideration, and other adjustments required to reconcile income tax expense with the tax return of a foreign subsidiary all contributed to a higher than expected rate in the fourth quarter of fiscal 2012. Despite the income tax adjustments recorded in the fourth quarter, the company’s longer-term effective rate expectation remains between 33% and 35%.
For the full fiscal year, net sales were $1,724.1 million, reflecting a year-over-year increase of 4.5%. Diluted earnings per share in fiscal 2012 and 2011 were $1.29 and $1.06, respectively. By comparison, diluted earnings per share, adjusted to exclude restructuring and impairment expenses, were $1.37 and $1.09 in fiscal 2012 and 2011, respectively.
The company also announced an increase in its quarterly cash dividend to $0.09 per share payable in October 2012. This change represents an increase of over 300% from the current dividend payout of $0.022 per share.
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