Steelcase Reports Improved Profitability
GRAND RAPIDS — Steelcase Inc. posted a 6.4 percent sales gain and improved earnings in the most recent quarter.
The company this morning reported revenue of $651 million for the second quarter that ended Aug. 27, up 6.4 percent from the $612.1 million in the same period a year earlier. About $8.3 million of the increased revenue came from a surcharge implemented during the prior quarter in response to rising steel prices.
Net income for the quarter was $7.3 million, or 5 cents per share, which compares with an operating loss of $3.2 million, or 2 cents per share, a year ago.
Steelcase said all business segments reported improved profitability during the quarter as ongoing restructuring efforts began to pay off.
We are seeing benefits from our multi-year restructuring effort, improved productivity from lean manufacturing initiatives, and top-line growth from our larger customers and in key vertical markets,” President and CEO Jim Hackett said.
Year to date, Steelcase’s revenues were $1.24 billion, up 6.9 percent from the $1.16 billion during the first six months of the previous fiscal year.
For the present third quarter, Steelcase projects sales to grow 4 percent to 8 percent over the prior year, including $8 million from the steel surcharge, with revenues similar to the second quarter. Steelcase expects net income of 5 cents per share in the third quarter, including after-tax restructuring charges of $1 million to $3 million.