Steelcase reports results
Steelcase Inc. (NYSE:SCS) reported a first quarter net loss of $(11.1) million, or $(0.08) per share, including an $(11.4) million charge resulting from the recently enacted healthcare reform legislation specifically related to the Medicare Part D Subsidy. Steelcase reported break-even net income in the first quarter of the prior year.
According to a news release, first quarter revenue of $541.8 million, in comparison to prior year, was negatively impacted by $14 million from the deconsolidation of dealers completed in the previous 12 months and positively impacted by approximately $6 million of favorable currency translation effects. Adjusted for these impacts, the company experienced organic revenue growth of one percent over the prior year.
"After six straight quarters of year-over-year revenue declines during this current industry downturn, we are pleased with the organic revenue growth in the first quarter," said James P. Hackett, president and CEO. "Even though the growth was modest, our operating results improved significantly as a result of our cost reduction efforts over the past two years."
The current quarter operating loss of $1.4 million represents an improvement of $3.8 million over the prior year operating loss of $5.2 million which included $16.8 million of income associated with an increase in cash surrender value of variable life company-owned life insurance policies. Current quarter results include $2.5 million of restructuring costs compared to $2.8 million of restructuring costs in the prior year. Adjusted for these items, first quarter adjusted operating income of $1.1 million improved $20.3 million compared to the prior year adjusted operating loss of $19.2 million.