MUSCATINE, Iowa - Furniture-maker HNI Corp. posted a net income of $17.6 million, or 39 cents per diluted share, as sales fell more than 30 percent in the third quarter.

The manufacturer reported sales of $454 million for the quarter ended Oct. 3, which compared with sales of $663.1 million for the same period a year ago.

The third quarter results include charges related to the shutdown of three office furniture manufacturing plants and restructuring of hearth operations.

"Our strong third quarter profitability demonstrates the power of our reset cost structure," Stan Askren, HNI Corp.'s chairman, president and chief executive officer, said in a news release. "Our members have done an outstanding job of attacking costs and increasing efficiency throughout the corporation."

The company's total selling and administrative expenses, including restructuring charges, decreased $56.7 million, or 29.7 percent in the quarter.

"We increased profitability and generated almost twice as much operating cash flow during the quarter despite the challenging market and revenue down 32 percent," he added.

For the first nine months of 2009, HNI's consolidated net sales decreased $600 million, or 32.5 percent, to $1.2 billion. Acquisitions added $10 million of sales.

Operating income was $16.5 million compared to $69.1 million in the prior year period. Earnings per share decreased in the first nine months to 10 cents per diluted share compared to 83 cents per diluted share last year.

HNI reduced its total debt by $119 million during the first nine months using cash flow from operations and proceeds from the sale of long-term investments.

"We continue to face uncertain and challenging marketing conditions," Askren said, adding that the third quarter benefited from strong seasonal demand in the government and education sectors. Looking ahead, he said that demand should dissipate in the fourth quarter "resulting in revenue below third quarter levels."