Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Steelcase Profit Tops Estimate - Update

RELATED NEWS
Trade SCS now with 

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%.

Register
To receive FREE breaking news email alerts for Steelcase Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
After initially showing a lack of direction, stocks have moved mostly higher over the course of the trading day on Friday. With the gains on the day, the markets are extending the upward trend seen over the past several sessions. In another troubling sign for Democrats, the results of a Gallup poll released on Friday show that Tea Party Republicans are much more motivated to vote in the upcoming midterm elections than other Americans. The poll found that 73 percent of Tea Party Republicans are "extremely" or "very" motivated to vote in this year's elections. While the Commerce Department released a report on Friday showing a modest increase in new home sales in the U.S. in the month of September, the uptick came from a significantly downwardly revised level in August.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.