Welcome to JSA Consultancy Services

A business consultancy, based in London, England, John Sacks' JSA Consultancy Services provides expert, in-depth, information advice and guidance as to how to exploit successfully the office furniture and interiors markets in Europe, North America, Australasia and Japan.

Steelcase 2nd quarter’s results – earnings fall 6.4%

Wednesday 18 September 2013

Steelcase Inc.'s fiscal 2nd quarter earnings slipped 6.4% as the office-furniture maker recorded an increase in operating expenses and restructuring costs, and a drop in sales in the company's Europe, Middle East and Africa segment.
"Our consolidated results continue to be negatively impacted by the economic crisis in Western Europe," said Chief Executive James P. Hackett, noting that while the Americas outperformed the company's expectations, results in Europe, Middle East and Africa "reflect a significant operating loss, despite the great work of our resident teams to position our business for the eventual economic recovery in Western Europe."
The furniture maker has been helped in recent years by increased spending on work spaces, as more offices move away from cubicles and demand things like benches, tables and lounge seating.
In July, Standard & Poor's Rating Services raised Steelcase's long-term corporate credit rating a notch to triple-B, saying the company should benefit from an improving economy and cost-cutting efforts.
Steelcase also said in July that its chief executive, James P. Hackett, will end a nearly two-decade tenure at the helm of the company in February. At that time the company hadn't named a replacement, but said Mr. Hackett will continue as vice chairman for an additional year after stepping down, and will remain a member of the board.
In the latest period, sales in the Americas were up 3.5% at $558.7 million, while sales in Europe, Middle East and Africa fell 5.4% to $132.4 million.
For the quarter ended Aug. 23, Steelcase reported a profit of $27.6 million, or 22 cents a share, compared to $29.5 million, or 23 cents a share, a year earlier. Excluding restructuring charges, earnings were 24 cents a share in the latest period. Revenue rose 1.7% to $757.6 million.
Steelcase in June expected per-share earnings of 22 cents to 26 cents, including about three cents in adjustments, on revenue of $760 million to $785 million.
Gross margin widened to 32.2% from 30.6%.
Operating expenses climbed 4.4% to $188.9 million, while restructuring costs rose to $3.4 million from $0.3 million a year ago.
For its third quarter, the company predicted per-share earnings of 23 cents to 27 cents, including a penny in adjustments, on revenue of $755 million to $780 million. Analysts polled by Thomson Reuters recently forecasted earnings of 26 cents a share and revenue of $757.1 million.
Shares fell 1.3% to $15.44 in after-hours trading. As of the close, the stock had risen 23% since the start of the year.

Subscribe to our News Page

Enter your email here and we will tell you when this page is updated.

 

 

moreLatest News

Wednesday 10 January 2018 Announcing PANTONE 18-3838 Ultra Violet, PANTONE® Color of the Year 2018.

“A dramatically provocative and thoughtful purple shade, PANTONE 18-3838 Ultra Violet communicates

Tuesday 9 January 2018 Knoll Designs Armless MultiGeneration Light Task ChairKnoll Inc. alleges patented chair design was u

PHILADELPHIA – A furniture company with a place of business in Greenville alleges one of its paten

Sunday 7 January 2018 Herman Miller reports Second Quarter Fiscal 2018 Results – orders at all-time-high

Herman Miller, Inc. (NASDAQ: MLHR) today announced results for its second quarter ended December 2,

Wednesday 3 January 2018 Swindon Furniture Company Hit by Brexit Rescued

A furniture company whose sales went into decline after the vote on Brexit has been sold out of admi

Contact Us

JSA Consultancy Services
4-5 Gray’s Inn Square, Gray’s Inn,
London, WC1R 5AH, England


+44 (0) 20 7688 1928