HNI is the second-largest office furniture manufacturer

HNI is the second-largest office furniture manufacturer HNI is the second-largest office furniture manufacturer in the world operating and the nation's leading maker of gas- and wood-burning fireplaces. Like the rest of its peers, the company's results were stung last year by a sharp decline in sales, although HNI was mostly able to maintain or even grow margins during the recession due to cost-cutting.

On Wednesday, HNI posted a profit of $15.7 million, or 34 cents a share, down from $17.6 million, or 39 cents a share, a year earlier. Excluding restructuring and other impacts, earnings fell to 35 cents from 54 cents. Sales grew 2.8% to $458.9 million, following a 32% slide last year.

Analysts surveyed by Thomson Reuters expected a profit of 48 cents on sales of $485 million.

Gross margin narrowed to 35.1% from 36.9%. Meanwhile, operating costs further pressured the bottom line.Office furniture sales, which make up a bulk of the company's business, grew 3.5%, while profit dropped 15%. Sales of hearth products decreased 0.8%, although the segment's profit climbed 63%.