Published in Breaking News

Steelcase performance flat in third quarter

BY Wednesday, December 21, 2016 02:10pm

GRAND RAPIDS — Steelcase Inc. reported flat earnings in its third quarter, but still met analyst predictions and the guidance the company issued earlier in the year.

The Grand Rapids-based office furniture manufacturer generated revenues of $786.5 million in the third quarter of its 2017 fiscal year that ended Nov. 25, which compares to $787.6 million during the same quarter a year ago, according to an earnings report.

Steelcase (NYSE: SCS) reported $41.2 million in net income for the quarter, or 34 cents per diluted share, a 15.7-percent increase compared to the $35.6 million in net income, or 28 cents per diluted share, in the same quarter of the prior year.

“It wasn’t a bad quarter, but we expected better,” President and CEO Jim Keane said during a conference call with analysts.

The company’s performance was driven down by its Americas segment, largely due to a “significant” number of orders that were expected to ship during the quarter but were postponed to the fourth quarter, according to earnings report. For the quarter, the company reversed its fortunes in the Europe Middle East and Africa segment, in which it reported $2.7 million in operating income, compared to a net loss of $14.9 million a year ago.

Going forward, Steelcase projects overall fourth quarter revenues of between $735 million and $760 million as a result of a continued decline in orders in the Americas.

Moreover, executives expect a cooling effect on revenues in the Americas related to “an unusual amount of requested delivery dates which fall beyond the fourth quarter,” according to the earnings report.

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