Steelcase Q1 Results Miss View - Quick Facts

(RTTNews) - Office furniture maker Steelcase Inc. (SCS) posted higher first-quarter net income of $21.0 million, or $0.17 per share, versus $13.2 million, or $0.10 per share, last year. Excluding net restructuring benefits, adjusted earnings per share amounted to $0.12 for the quarter. On average, four analysts polled by Thomson Reuters expected earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

The latest quarter's operating income of $36.4 million compares to operating income of $20.4 million a year ago.

Sales for the quarter improved 8.4% year-over-year to $723.1 million from $667.10 million, while 3 analysts estimated $728.73 million in sales. Organic revenue growth over the prior year was 8 percent after adjusting for approximately $4.4 million of favorable currency translation effects.

Further, the company said it has initiated procedures with the applicable works councils regarding a project to exit a manufacturing facility in France and transfer its activities to other existing facilities in the EMEA region to safeguard the company's global competitiveness. This project may involve the transfer of the operations of the facility to a third party or result in a closure, and the total costs of the project are currently estimated at $30 to $50 million, with projected annual savings of roughly $10 million when fully implemented.