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Haworth Predicts Industry Upswing

Though the company's annual results are down, analysts say the furniture industry is looking up.

Dave Platter -- Interior Design, 2/9/2004 12:00:00 AM

Haworth, the office furniture company known for its innovative use of technology and design, posted annual results that show the furniture industry is still suffering from lagging demand.

The 55-year-old, privately-held company reported sales figures of $1.23 billion for 2003, down eight percent from 2002. Sales in 2003 were down approximately 40 percent from the $2.065 billion it reported in 2000--the company's best year to date.

Despite the bad news, analysts say the office furniture industry is on the way up.

"After several false starts, we believe the industry is on a path to a sustainable pickup in business," wrote Keith Hughes, an analyst with SunTrust Robinson Humphrey, in a research note that was quoted by Dow Jones Newswires on February 2.

"The lack of furniture buying the last several years has created a significant backlog of demand," Hughes also wrote.

That's good news for the man who built Haworth, Richard Haworth, whose personal fortune, according to Forbes magazine, has depreciated along with that of his business. The magazine reported that Haworth's personal fortune decreased from $725 million in 2000 to $600 million in 2003.

"Despite a continuing weak economy, we strengthened our global position in 2003," reported Calvin W. Kreuze, C.F.O. and vice president of global finance for the furniture giant.

In a statement released to InteriorDesign.net, Kreuze said the company has been cutting manufacturing costs and developing new products.

The manufacturer bought InterfaceAR, the second-largest raised-access flooring manufacturer in the U.S., in October 2003. The product houses HVAC, wires, and cabling, and is an example of how the company is expanding its product portfolio to create complete office interiors. Additionally, Haworth has recently introduced moveable walls, integrated furniture systems, seating, and storage in order to create unique workspaces that address changeability, cost effectiveness, and environmentalconcerns.

For more information, visit www.haworth.com.