Herman Miller FY 2Q16 Earnings Call Notes

Brian Walker

Information on the North America consumer is somewhat mixed

“As you know information on the North America consumer is somewhat mixed, as with the contract market some geographic areas are being impacted by the dislocations in the energy complex and the exceptionally strong dollar has reduced some of the appetite for vacation home buyers from some parts of the globe, while these factors are concerning, we believe strong employment, expanding wages and lower interest rates show to go well for investors in housing and furniture.”

There are more projects on the mid and smaller side, not a lot on the large

“Well first of all from everything we can read from dealer, sales people and those kind of things and looking at project activity. We feel pretty good about where that is, activity levels have remained strong and we think we are in a pretty good spot competitively. I’d say if there is anything that you will hear out there certainly the size of projects continues to be on mid to smaller size there is not as many very-very large things out there at least that we can see. ”

ERP conversions are always difficult

‘ERP conversions are always difficult is the best way to describe it so one of the reasons we talked about it on the first quarter call is to how we’re going to go through this. We like always you believe you’ve done everything that you can to prepare, I’ll say as these things go it was actually a pretty good one, but it still had more disruptive impact particularly at the sales level of what was going on to the sales team.”

Jeff Stutz

Commodity prices have been a big benefit for us

“clearly we have benefited from commodities we mentioned that in the prepared remarks. Commodity pricing has been a big benefit for us, I mean, that’s not unique to Herman Miller of course but that’s been very helpful as you know as we’ve talked in the past steel and steel component parts are big driver in our overall cost of goods sold and those levels are at levels that we haven’t seen since the early 2000s, right, so that’s been a big help now intertwined in that a bit that is the currency drag that we have been feeling and of course we feel that as an North American segment in our Canadian business.”