Muscatine-based HNI Corp. reported that its first-quarter profits fell 27.7 percent as a result of softness in office furniture orders. Earnings from continuing operations fell to $20.7 million, or 43 cents per share, from $28.6 billion, or 55 cents a share, in the year-ago period.

Net sales declined 5.6 percent to $609.2 million, compared with $645.6 million last year. For the office furniture segment, net sales increased $10.2 million to $497.9 million as $14.7 million of incremental sales from acquisitions offset lower sales from the supplies-driven channel. Operating income overall fell 21.8 percent to $36 million from $46 million last year.

“The office furniture industry has moderated,” said Stan Askren, the chairman, president and CEO of HNI, in a press release. “In particular, we’ve experienced softness in the supplies-driven channel. We do not anticipate these trends to improve during 2007. In addition to our focus on accelerating growth, we are actively identifying structural and operating cost reductions in response to these market conditions.”