Steelcase Posts 1Q Profit

Grand Rapids, MI, June 20—Steelcase, Inc. posted a quarterly profit after a year-earlier loss, helped by recovering demand for office furniture in the United States.

The company reported first-quarter net income of $6.7 million, or 5 cents a share, compared with a net loss of $5.7 million, or 4 cents a share, a year earlier.

Revenue rose 13 percent to $676 million in the quarter.

The results were at the high end of the company’s March forecast, but the per-share result fell short of Wall Street expectations.

Analysts, on average, had expected profit of 8 cents a share and revenue of $674 million, according to Reuters Estimates.

Included in the first-quarter results were net restructuring charges of $6.8 million, slightly less than expected. Despite those charges, the company said its gross margins improved to 29.5 percent from 28 percent a year ago.

The company also said it used $52 million in cash to pay off debt during the quarter, reducing debt to $273 million, the lowest level since 2000.

Looking ahead, Steelcase forecast second-quarter profit will be between 8 cents and 13 cents per share, including restructuring charges of $3 million to $7 million, and sees sales rising 10 percent to 15 percent because of a strong backlog.

The company did not provide full-year forecasts, but said it anticipates strong orders globally.

“We’re making good, sustained progress toward our long-term profitability goals,” Chief Financial Officer James Keane said. “We are seeing the benefits of restructuring and improved pricing yield.”