HNI Corp., based in Muscatine, announced sales rose to $543.6 million and net income was $18.6 million for the second quarter. 

The quarter, which ended June 30, also saw generally accepted accounting principles, or GAAP, net income per diluted share of 42 cents compared to 31 cents in the prior year, according to HNI's earning release Tuesday.

"Our strong sales momentum continued during the second quarter," President and CEO Jeff Lorenger said. "Results were better than expected in both our Hearth and Office Furniture businesses. The investments we've made in product, selling and fulfillment capabilities are paying dividends. I'm pleased with our quarterly results and our progress driving long-term shareholder value."

HNI reported consolidated net sales increased $29.1 million, or 5.7 percent, from the prior year quarter to $543.6 million.

Office furniture net sales increased $17.4 million, or 4.3 percent, to $423.9 million. Its hearth products reported net sales increased $11.7 million, or 10.8 percent, from prior year quarter to $119.7 million, driven by increases in new construction and retail businesses, according to the report.

Looking ahead, Lorenger expects continued growth in the second half of 2018, propelled, in the short term, by increasing input costs and productivity initiatives, he said. 

HNI predicts full-year organic sales to rise 6 to 8 percent. Including the impact of closing and divesting small office furniture companies, full-year sales are expected to be up 3 to 5 percent, the report said. 

The company also projects a rise in organic sales for the third quarter.