Published in Manufacturing

Steelcase posts higher earnings for third quarter

BY MiBiz Staff Tuesday, December 18, 2018 04:41pm

GRAND RAPIDS — Contract furniture maker Steelcase Inc. posted strong, double-digit gains in sales and earnings for its most recent quarter.

The Grand Rapids-based Steelcase (NYSE: SCS) generated sales of $901 million for the three-month period that ended Nov. 23, up 16.7 percent from $772.1 million in the same period a year earlier, according to an earnings report released this afternoon.

Steelcase reported net income of $37.3 million, or 31 cents per diluted share, for the third quarter of its present 2019 fiscal year, versus $25.7 million, or 22 cents per diluted share, a year earlier.

Sales for the first nine months of the fiscal year grew 10.9 percent to $2.53 billion and net income increased to $103.4 million, or 87 cents per diluted share.

In the present fourth quarter, Steelcase expects sales of $860 million to $885 million, or a 9 percent to 12 percent increase from the $772.7 million last year. The company expects quarterly net income of 24 cents to 28 cents per share.

The guidance reflects “an expectation that pricing benefits will begin to outpace the increase in commodity, freight and labor costs and unfavorable business mix will continue,” the company said in today’s earnings report.

“We remain focused on growing revenue at a higher rate than industry trends through our industry-leading innovation and global scale,” President and CEO Jim Keane stated. “Our fiscal 2019 earnings are on track to represent one of our strongest years in more than a decade, and we are targeting to grow revenue and earnings again in fiscal 2020.”

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