The ratings on Zeeland, Mich.-based Herman Miller Inc. reflect its solid market position in the office furniture industry, variable cost structure, and solid financial condition. These factors are somewhat offset by the competitive and volatile nature of the office furniture industry, and the company's sensitivity to raw-material price fluctuations. Herman Miller is a leading designer and manufacturer of office furniture and systems. The U.S. office furniture industry is highly competitive, with five companies garnering a significant portion of the market. Among these five, Herman Miller maintains the number-three position, with about $1.5 billion in sales during its fiscal 2005, ended May 28. Two other rated industry participants are market leader Steelcase Inc. (BBB-/Stable/--), with about $2.6 billion in sales for
