Steelcase Misses 4Q Forecasts

Grand Rapids, MI, March 30–Steelcase posted a quarterly profit after a year-earlier loss, but missed analysts’ estimates as it continued to struggle with high steel prices.

For the fiscal fourth quarter ended Feb. 25, the Grand Rapids, Michigan-based company posted net income of $1.0 million, or 1 cent a share, compared with a loss of $19 million, or 13 cents a share, a year earlier.

Analysts were expecting earnings of 4 cents a share.

Helped by improved sales, revenue in the fourth quarter rose 23 percent to $691.0 million, compared with $563.4 million in the year-ago quarter.

The company forecast first-quarter earnings in the range of breakeven to 5 cents a share on 10 to 15 percent sales growth. Analysts, on average, expect the company to earn 4 cents a share.

In the first quarter, the company also expects to book about $6 million to $8 million in restructuring charges related to the Michigan plant closings it announced earlier this week. For the full fiscal year 2006, Steelcase expects to record $18 million to $23 million in after-tax restructuring charges, the company said.