6/15/2009 8:10:00 AM
The HON Company Backgrounder
Profile:
The largest operating company of HNI Corporation (formerly HON INDUSTRIES), The HON Company is North America's leader in providing workplace furniture solutions from the backroom to the boardroom of small- and medium-sized businesses.
The HON Company offers a full product line – including panel systems, desks, tables, chairs and file and storage cabinets – through a nationwide network of dealers and wholesalers. HON products can be found in many of America's commercial businesses, schools and universities, government buildings and healthcare facilities.
The HON Company was founded in 1944 with the implicit intent of providing employment for returning World War II military. Over time, the company grew into the office furniture leader it is today.
Philosophy:
The HON Company is committed to understanding the needs of people who buy and use office furniture and offering products based on what customers say they want – timeless style, comfort, the ability to add on as they grow, and durability at an affordable price.
The HON Company is proud of its continual growth within the industry. The company credits three things for that success: it invested in knowing its customers, worked to simplify the office furniture-buying process and invested in building the HON brand.
Over 94 percent of HON customers are either "extremely satisfied" or "very satisfied," - the highest customer satisfaction score in the company's history. It owes its success to being one of America's leaders in lean manufacturing. The HON Company relies on its unique culture of rapid, continuous improvement, which empowers everyone who works at The HON Company to look for more innovative, cost-effective processes to serve its customers in the best way possible.
The Future:
The HON Company strives to focus on understanding customer needs like no one else in the business and improving its strengths – being a provider of high-quality products and unsurpassed customer service, as well as managing cost containment, operating efficiencies and strong distribution channels.
The HON Company also will continue to invest in building the HON brand with product innovations, advertising, public relations, direct marketing, Web site and showroom expansion.
The Environment:
In 1947 the company began making recipe card boxes from pieces of scrap metal generated from its contract business. More than 50 years later, The HON Company practices one of the industry's strongest and most comprehensive programs to conserve raw materials and reduce waste.
Today, environmental management is firmly embedded in all of The HON Company’s manufacturing processes. The HON Company defines waste as anything that does not bring value to the customer, and life cycle considerations are a significant part of all product development efforts.
The HON Company Believes:
We believe in the integration of safety into environmental philosophy and policies. To us, safety and environment go hand in hand — our overriding goal is to increase safety at the same time we reduce our impact on the environment. Individual responsibility is fundamental here, based on the knowledge that we can each impact the environment and workplace safety every day. We strive always to move beyond what we are required to do — to focus on what we are capable of doing.
At The HON Company, lean is green. Green is not trendy; it's a part of our culture. It has always been a part of The HON Company's way of doing business.
Recognition:
Building Operating Management Magazine, Reader’s Choice Award, 2008 – The F3™ chair with ilira®-stretch fabric recognized as one of the year’s top products by building owners and facility managers.
Buildings Magazine, Product Innovations Award, Grand Prize, Workplace Flexibility, 2008 – SmartLink™ classroom furniture named innovative solution for successful building application.
Buildings Magazine, Project Innovations Award, Citation of Excellence, 2008 – The HON Company’s Chicago Showroom received the honor for its refreshed space at the Merchandise Mart.
Commercial Beautification Award, Chamber of Commerce, South Gate, Calif., 2008 – for the Los Angeles manufacturing and showroom facility. Received honor for improvements made to the exterior of the building and also for updates made within the facility.
Contract Magazine, Best of NeoCon Award, Silver, Education Solutions, 2008 – SmartLink classroom furniture earned top honors in the category at NeoCon 2008.
Fortune Magazine, 2008 – HNI Corporation was recognized as one of America’s Most Admired Companies in the furniture industry.
IndustryWeek, 2007, 2006, 2005, 2004, 2003 – HNI Corporation was recognized as one of the 50 Best Manufacturing Companies.
One of the 10 Best Manufacturing Facilities in North America, 2005 – awarded to The HON Company’s Cedartown, Ga. plant by IndustryWeek magazine.
Shingo Prize for Excellence in Manufacturing, 2007 – for the South Gate manufacturing plant in Los Angeles; 2005 – for the Richmond, Va., manufacturing facility and 2003 – for the Cedartown, Ga., manufacturing facility.
Forbes Magazine, 2007, 2006, 2005, 2004, 2003, 2002, 2001, 2000, 1999 – HNI Corporation was listed among the "400 Best Big Companies In America."
United Stationers Recognizes The HON Company, 2006 – The HON Company was recognized with four awards from United Stationers, designating the company as a preferred supplier in filing, storage, seating and desks.
Dealer’s Choice Manufacturer of the Year Award, 2008, 2005, 2004, 2003; Circle of Excellence Awards, 2006, 2005, 2004, 2003 – The Office Furniture Dealers Alliance (OFDA) recognized The HON Company with the Manufacturer of the Year Award for its training, service and support and management. It received four Circle of Excellence awards in the categories of training, technology, service and support.
Millennium Award, 2006 – The HON Company won a silver award from the winter 2006 Millennium Awards Competition for its promotional video presentation entitled "HON for Learning.”
Design Journal’s Awards for Design Excellence (ADEX), 2007-2008 – The HON Company’s F3™ chair with ilira® - stretch fabric and the Initiate® with Nature Core™ segmented panel system attained Platinum honors, one of the most prestigious honors in the design industry.
Service Quality Measurement Group (SQM) Recognizes The HON Company, 2006 – For the second year in a row, The HON Company's customer service department was recognized for achieving excellence in providing world class customer satisfaction.
Georgia Manufacturer of the Year, 2006 – awarded to The HON Company’s Cedartown, Ga., plant by the Georgia Department of Technical and Adult Education and the Georgia Department of Economic Development.
GOOD DESIGN® Award, 2005, 2004, 2003, 2002 – awarded by The Chicago Athenaeum: Museum of Architecture and Design for the Perpetual® Nesting Chair, Alaris™ Work chair, Perpetual chair, Olson Flex Stacker™ chair and Perpetual desk.
Iowa Recognition for Performance Excellence, 2005 – awarded by Iowa Governor Tom Vilsack to the Oak Steel and Geneva plants for leadership, strategic planning, customer focus, measurement, analysis, knowledge management, human resource focus, process management and business results.
Best of Show® Award, NeoCon® 2005, 2004, 2003 – awarded by Design Journal for The HON Company’s Tercero™ conference room, Initiate® panel system and Perpetual® seating.
EPA Pollution Protection for Environmental Excellence Award, 2004 – awarded to HNI Corporation for the outstanding environmental performance of The HON Company.
Georgia Oglethorpe Award for Organizational Performance Excellence, 2004 – for the Cedartown, Ga., manufacturing facility.
Editor’s Top 100, 2004 – awarded by Buildings magazine for The HON Company’s Perpetual® nesting training table.
GSA Evergreen Furniture Award, 2003 – awarded to HON INDUSTRIES (now HNI Corporation) by the U.S. General Services Administration for the outstanding environmental performance of The HON Company and its sister company, Allsteel®.
Corporate Giving:
Through the HNI Charitable Foundation, The HON Company is involved in a variety of altruistic initiatives to help make a difference in improving the quality of life in the communities it serves. The Foundation grants funds and supports member volunteers in several philanthropic categories, including civic and community, culture and the arts, education and health and human services.
Forward-looking Statements:
Statements in this news release that are not strictly historical, including statements as to plans, objectives and future financial performance, are "forward-looking" statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, which may cause the Company's actual results in the future to differ materially from expected results. These risks include, among others: the Company's ability to realize financial benefits (a) from its price increases, (b) from its cost containment and business simplification initiatives, (c) from its investments in strategic acquisitions, new products and brand building, (d) from its investments in distribution and rapid continuous improvement and (e) from its repurchases of common stock; uncertainty related to the availability of cash to fund future growth; lower than expected demand for the Company's products due to uncertain political and economic conditions; lower industry growth than expected; uncertainty related to disruptions of business by terrorism or military action; competitive pricing pressure from foreign and domestic competitors; higher than expected costs and lower than expected supplies of materials (including steel and other materials); and other factors described in the Company's annual and quarterly reports filed with the Securities and Exchange Commission on Forms 10-K and 10-Q.
The HON Company is a leader in the design and manufacturing of workplace furniture including chairs, files, panel systems and desks. Headquartered in Muscatine, Iowa, The HON Company has numerous manufacturing facilities strategically located throughout the United States, and markets its products through a nationwide network of dealers and retailers.
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