HNI is the NYSE symbol for an office funiture and hearth producer. On the income statement taken from the HNI Annual report, note how costs have been trimmed significantly but both sales and net income have declined. The decline in total sales and thus net income must have come from a change in demand for office furniture. HON is especially susceptible to changes in consumer demand since they retail their merchandise at Staples, Office Max, and other retail outlets. Allsteel, an subsidiary, enjoys sticky prices since most of their sales are contracted. I would guess that office furniture is especially income elastic to a business. [Click to enlarge the income statement]
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