Steelcase Reports Third-Quarter Profit

December 21, 2008  by in UnCategorized   

By Home Furnishings Business in economic news on December 22, 2008 Steelcase reported net income of $0.4 million in its third quarter, which was slightly ahead of the office furniture maker's most recent estimates, but far behind the $31.2 million in net income in last year's third quarter.

The Grand Rapids, Mich.-based company, which announced recently it will idle up to 900 workers, said third-quarter revenue dropped 8.4 percent to $811.3 million. Its North American unit saw sales decline 11.4 percent.

"The impact of the recent financial crisis is being felt around the world and has significantly affected the demand patterns in our industry," said President and CEO James Hackett. "The restructuring actions we announced recently are designed to mitigate the shorter-term pressures on our profitability while continuing to improve the fitness of our business over the longer term."

Vice President and CFO David Sylvester said the sales downturn is expected to continue for several quarters, and the company predicts a loss of 4 cents to 10 cents in its fourth quarter, including restructuring costs. Sylvester said a strong balance sheet “will allow us to continue investing in growth initiatives that will further strengthen our leadership position coming out of this economic cycle."