Herman Miller, Inc. (NASDAQ:MLHR)

CAPS Rating: 5 out of 5

The Company researches, designs, manufactures & distributes interior furnishings, for use in various environments including office, healthcare, educational, and residential settings, and provides related services that support companies all over the world.


Player Avatar Boone (34.57) Submitted: 6/26/2008 5:10:23 PM : Outperform Start Price: $25.05 MLHR Score: -42.94

Increasing sales AND margins in a difficult environment; expanding international business now makes up over 20% of total sales; over $200 million in cash flow from last fiscal year, consistently rated one of the most innovative companies and best companies to work for...

The company is in control of rising input costs, in part because it is one of the leaders in energy and resource efficiency and these efficiencies translate into a strong brand associated with environmental and social responsibility as well as operational advantages over competitors that will be amplified by increased input costs. The company that has learned to do more, and do it more stylishly, with less, and recover those inputs by how they design the product in the first place, is going to come out on top.

In a recent quarterly report conference call management articulated aspirations well beyond establishing and maintaining a competitive furniture company:

"The vision is the same; to grow and diversify our business moving us from being primarily a US office furniture manufacturer to becoming a global habitat company with a formula centered around performance innovation."

... a GLOBAL HABITAT COMPANY centered around performance and innovation, trading at 10x earnings.

Yes, please.

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