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H O N  I N D U S T R I E S  2 0 0 3
our rapid continuous improvement (RCI) programs, in 1992. It 
is not only a process to drive out cost, it is a powerful tool to 
engage every member every day in making choices to improve 
the value we provide to our customers.
E N H A N C I N G  C U L T U R E  A N D  C A P A B I L I T I E S  
Our values are simple yet powerful. They are as relevant today 
as they were when the company was founded 60 years ago. 
Our member-owner culture of shared responsibility and shared 
reward engages all members in the ongoing business improve-
ment process and allows us to embrace change. As we continue 
to add and develop talent to support our growth strategies, we 
become more diverse in our perspectives, strengthening our 
ability to understand and meet the needs of our customers and 
end-users.
 On January 5, 2004, we completed the acquisition of 
Paoli Inc., a leading provider of wood case goods and seating. 
The acquisition reflects our commitment to achieving profit-
able growth. With annual sales in excess of $80 million, Paoli 
has well-known brands, a broad product offering, and strong 
independent representative sales and dealer networks. This 
acquisition supports our operating philosophy to work through 
autonomous, decentralized businesses with strong brands 
focused on distinct markets. 
Important to our company’s success, is a strong Board 
of Directors who bring their individual skills, knowledge, and 
experience to our company. Their involvement, independence, 
and integrity provide the ongoing foundation for effective gov-
ernance and corporate oversight for you, our shareholders. 
This year we recognize retiring directors Lorne R. 
Waxlax, Robert W. Cox, and M. Farooq Kathwari. We thank 
them for their dedication. We are also pleased to welcome 
Joseph Scalzo, President, Personal Care Products, The Gillette 
Company, to our board. 
Our CEO succession process is progressing smoothly. 
The appointment of Stan Askren as President of HON 
INDUSTRIES and as a member of the Board of Directors, 
announced in February 2003, was an important part of 
this process. 
Our office furniture and hearth businesses are healthy 
and well-positioned for growth; still we continue to face a com-
petitive business environment. We are confident of our financial 
security, and certain that our transition to becoming a market-
driven, operationally excellent company will continue to en -
hance shareholder value. The transformation continues. We will 
be seeking shareholder approval, in early May 2004, to change 
the name of HON INDUSTRIES to HNI Corporation, drawing 
on our heritage while remaining true to our culture and values. 
The new name will serve to better align the corporate identity 
with the direction of the company, as a strategic manager of 
multiple, distinct, and independent brands.
We thank our member-owners for their continued 
dedication, and look forward to the challenges and opportuni-
ties of 2004.
Jack D. Michaels
C H A I R M A N  A N D  C H I E F  E X E C U T I V E  O F F I C E R
Stan A. Askren
P R E S I D E N T