The latest news from Home Micro Observation: Recently, MillerKnoll, a world-renowned office furniture manufacturer, released its results for the third quarter of fiscal 2022, saying that its orders in the contract and residential business areas have surged, bringing huge market pressure. The data shows that MillerKnoll’s total orders in the quarter reached nearly $1.1 billion, a year-on-year increase of 93.6%, which does not include the growth rate brought by MillerKnoll’s completion of the merger of the two brands (Herman Miller and Knoll) in July 2021. .

MillerKnoll Office Furniture

Office Furniture by MillerKnoll

Company-wide sales for the quarter were approximately $1 billion, an organic increase of 20.3% from the third quarter of 2021. Meanwhile, adjusted EPS fell 57% to 28 cents per diluted share from 65 cents per diluted share in the third quarter of 2021.

MillerKnoll said in the earnings report: "This quarter, many parts of the world turned their focus to emerge from the epidemic. Most contract customers have initiated plans to return to the office. We also saw a push to invest in the workplace to create quality for our customers. space and a differentiated office experience.”

It is reported that MillerKnoll's international contract division sales increased by 25.9%, and orders increased by 70%. Sales in the Americas region rose 25.6 and orders rose 36.3. In Europe, as international tensions between Russia and Ukraine intensified, MillerKnoll said it would not fulfill existing orders from Russia or Belarus, nor would it accept new orders from Russia and Belarus. At the same time, for safety reasons, MillerKnoll has also stopped production and delivery of new orders in Ukraine.

However, MillerKnoll is still battling a number of factors that prevent timely production and shipping. MillerKnoll estimates that in the third quarter alone, the disruptions resulted in a net sales loss of about $34 million. At the same time, it also caused a backlog of orders totaling about $1 billion.

"We have implemented a number of countermeasures to deal with these pressures and expect to see improved production levels starting in the second half of the quarter," MillerKnoll said.

About eight months after Herman Miller and Knoll merged, MillerKnoll executives said the company was on track to realize $120 million in cost synergies within three years of closing. As of last quarter, the company claims to have saved $45 million in operating costs.