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Steelcase Misses Q2 Expectations

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Steelcase Inc. (NYSE: SCS) reported weaker-than-expected earnings and revenue for the fiscal second quarter.

Higher income tax expenses, costs linked to restructuring hurt the office furniture maker’s bottom line, offsetting slight improvement in sales. Sales were primarily boosted by a strong performance in Americas; however, other markets such as Europe, the Middle East and Africa (EMEA) were disappointing.

Shares fell in aftermarket hours.

The Company provided upbeat sales guidance though. Steelcase expects growth in Americas will continue in the fiscal third quarter even as it foresees more headwinds in the EMEA region.

“We have tremendous confidence in our global strategy, yet our consolidated results continue to be negatively impacted by the economic crisis in Western Europe,” said CEO James Hackett while speaking to analysts in conference call.

For the fiscal second quarter, the Grand Rapids, Michigan based company reported a net income of $27.6 million or 22 cents a share, compared to a profit of $29.5 million or 23 cents a share, in the same quarter of last year.

In the latest quarter, the Company included restructuring charges of about 2 cents a share.

Analysts polled by Thomson Reuters had forecasted earnings of 26 cents a share.

Revenue for the quarter rose 1.7% to $757.6 million from $744.9 million, in the same period of last year. Analysts’ consensus estimate was for revenue of $773.33 million.

Sales, increased 3.5% in Americas, dipped 5.4% in the EMEA region while in rest of the regions it rose 2.2%.

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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