Edelman acquisition boosts results at Knoll
American office and residential furniture manufacturer Knoll, Inc. has reported its highest sales and operating margins since the company was floated in 2004, boosted by strong growth in its Specialty Products segment, which benefited from the company’s acquisition of leather manufacturer Edelman during the quarter (see www.leatherbiz.com September 19, 2007).
Net sales for the fourth quarter improved 3.2% to reach $281.8 million, while operating income increased 11% to $39.5 million and net income rose 15% to $20.7 million. For the full year, net sales grew 7.5% to reach $1.05 billion, operating income increased 13.5% to $142.2 million and net income improved 21.8% to $71.4 million.
Although acknowledging the current uncertainty in the market the company remains positive about the future, expecting first quarter 2008 revenue to be in the range of $258-265 million, an increase of 4.1%-6.9% from the first quarter of 2007. "While we are aware that our industry faces headwinds as we head into 2008, we are confident that the strength and diversity of our growth initiatives, the fullness of our new product pipeline and our cost discipline will allow us to continue to generate better than industry top-line performance as we work to achieve our mid-term 15% operating margin goals," said Andrew Cogan, chief executive.
