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Steelcase Profit Tops Estimate - Update

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12/19/2012 6:31 PM ET

Office furniture maker Steelcase Inc. (SCS: Quote), Wednesday reported a higher profit in the third quarter, on increased revenues in the Americas, while Europe, Middle East and other regions declined. Both earnings and revenues for the quarter topped Wall Street estimates.

Steelcase makes furniture and interior architectural products. The company saw a 3 percent growth in the Americas that accounts for most its sales. Europe, Middle East and Africa region were down 2.9 percent, and other regions slid 3.2 percent.

"We were pleased that the Americas expanded their adjusted operating margin by 110 basis points in the third quarter compared to the prior year, despite modest revenue growth," said CEO James Hackett.

The company is intent on improving performance in the EMEA segment as demand patterns remain mixed and a higher mix of lower-margin project business.

Steelcase posted third-quarter revenues of $727 million, up from $719 million last year. Analysts on consensus estimated revenues of $722.10 million for the quarter.

Organic revenue growth was 1 percent after adjusting for $8 million of unfavorable currency translation effects and a favorable impact of $6 million from dealer acquisitions.

The Grand Rapids, Michigan-based company reported quarterly net income of $23.6 million or $0.18 per share, compared with $22.4 million or $0.17 per share last year.

Excluding items, adjusted earnings for the quarter were $0.22 per share. Analysts estimated earnings of $0.21 per share for the quarter. Analysts' estimates typically exclude one-time items.

For the fourth quarter, Steelcase expects net earnings of $0.14 to $0.18 per share and revenues of $695 million to $720 million. Analysts currently expect earnings of $0.19 per share on revenues of $708.70 million.

The company's earnings outlook includes two cents per share of restructuring costs.

SCS closed Wednesday at $11.53, up 0.26%, on a volume of 1.3 million shares on the NYSE. In after hours, the stock dropped 0.13%.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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Chipmaker Advanced Micro Devices Inc. said Thursday after the markets closed that its first quarter loss narrowed from last year, helped by strong revenue growth in its graphics and visual solutions business. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. After trending higher over the past few sessions, stocks showed a lack of direction throughout the trading day on Thursday. The major averages spent the session bouncing back and forth across the unchanged line before ending the day mixed. While the major averages closed on opposite sides of the unchanged line, they all showed only modest moves. U.S. Secretary Of State John Kerry said Thursday that he and his counterparts from Russia, Ukraine and the European Union have reached an agreement on a preliminary plan for ending the ongoing crisis in Ukraine. Kerry was speaking at the end of the Ukraine contact group's first meeting, comprising the foreign ministers of Russia, Ukraine, the EU and the U.S., in the Swiss city of Geneva.
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