Teknion is Bouncing Back
Teknion Corp is a leading international designer, manufacturer and marketer of office systems and related office furniture products based in Canada. Teknion has been built on a core of design and innovation, product leadership, agility, responsiveness to our customers, and a commitment to long-term relationships.
In recent news, the company reported a big drop in second-quarter profit in financial restatements. This could be a result on the slight decrease in the economy. However, as according to the Teknion’s CEO, the company hasn’t lost market share and is expected to see Canadian revenues climb this year. “Obviously we’ve had a few issues, but we do think it’s important and it’s a growing region that services southeast Asia,” he said.
The comments came a day after Teknion said it had overstated inventory at its operations in Malaysia by $6.5 million, slightly higher than an initially estimated $5 million to $6 million. Feldberg said that despite problems at its Malaysian facilities, the company has no plan to sell the operations and considers it a “good business.”
David Feldberg told analysts on a conference call Friday that the company is predicting year-over-year revenue growth, for both the third quarter and the full year. However, when the CEO was asked if the operations in Malaysia were profitable, he did give an answer. The company typically doesn’t comment on the profitability of specific locations, he said.
Teknion reports that they earned 150,000 during the second-quarter compared with the $5.8 million earned last year. As for restated earnings in the previous five quarters, Teknion said its inventory overstatement was $6.1 million at Nov. 30, 2006, while net earnings for the second quarter of 2006 were overstated by $260,000 and by $239,000 for the six-month period ended May 31, 2006.
“We are seeing some trends. People and designers are looking for different ways to plan space and motivate their employees,” Feldberg said. This is perhaps a common truth in the office furniture industry. It is actually expected the more and more purchases will be incurred as the industry is facing moderated growth.
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