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.