Steelcase’s Q3 revenue up year over year at $800 million; company eyes growth in Americas segment

By Lisa Kerner

Charlotte, N.C., Dec. 23 – Steelcase Inc. ended its third quarter on Nov. 28 with cash, short-term investments and the cash surrender value of company-owned life insurance totaling $375 million and total debt of $285 million, according to its earnings news release.

Third-quarter revenue was $800 million compared to $785 million for the quarter ended Nov. 22, 2013.

Net income was $11.8 million for the period, or diluted earnings per share of $0.90, compared to $23 million and $0.18, respectively, for the year-ago quarter.

“The Americas operating margin of 12% remained strong again this quarter, and we remain optimistic about our ability to continue to grow Americas revenue,” said president and chief executive officer Jim Keane.

Order growth in the Americas was 3% and in line with expectations. However, year-over-year revenue comparison was negatively impacted by customer requests for extended delivery dates, which were higher than usual, according to Keane.

“In addition, the timing of the Thanksgiving holiday relative to the end of our fiscal quarter had a negative impact on the year-over-year comparisons for both orders and revenue,” Keane said.

Operating expenses were up $5.1 million year over year at about $195 million.

Looking ahead, Steelcase expects fourth-quarter fiscal 2015 revenue to be in the range of $760 million to $785 million and diluted earnings of between $0.16 and $0.20 per share.

Steelcase is a Grand Rapids, Mich.-based office furniture manufacturer.

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