Office furniture maker Steelcase Inc. (SCS), Wednesday reported a profit for the first quarter that was flat with last year, as revenues dropped while cost of sales declined. Earnings for the quarter were in line with analysts' estimates, but revenues fell short of expectations.
Grand Rapids, Michigan-based Steelcase reported a first-quarter profit of $13.2 million or $0.10 per share, flat with last year.
Adjusted earnings, which exclude restructuring costs of $0.03 per share, were $0.13 per share. On average, four analysts polled by Thomson Reuters expected earnings of $0.13 per share for the quarter. Analysts' estimates typically exclude special items.
Steelcase, which designs and manufactures furniture and interior architectural products, said its revenues for the first quarter dropped to $667.1 million from $675.2 million last year. Analysts expected revenues of $689.93 million for the quarter. Revenues declined due to the timing of shipment dates associated with first quarter orders in the Americas, and revenue shortfalls in France and Northern Europe.
Commenting on the results, Chief Executive James Hackett said, "Following twelve consecutive quarters of year-over-year organic revenue growth, we experienced a modest decline in the first quarter. We are not too concerned with this decline, as order growth in the Americas was better than expected, resulting in a strong quarter-end backlog, and customer visits and project activity remain high."
Cost of sales for the quarter improved 170 basis points to 68.5 percent of revenue from 70.2 percent last year.
Looking ahead to the second quarter, the company expect earnings in the range of $0.22 to $0.26 per share, and revenues of $760 million to $785 million. Analysts currently expect earnings of $0.27 per share on revenues of $771.30 million for the quarter.
The company declared a dividend of $0.10 per share, to be paid on or before July 12 to shareholders of record as of July 1.
SCS closed Wednesday's trading at $15.15, up $0.13 or 0.87% on the NYSE. The stock however slipped $0.60 or 3.96% in after-hours trade.
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