Steelcase posts break-even 2nd quarter results

Steelcase reports break-even 2Q on insurance policy gains, but sales slump

• On 9:20 am EDT, Thursday September 24, 2009

GRAND RAPIDS, Mich. (AP) -- Office furniture company Steelcase Inc. on Thursday said it broke even in the second quarter, hurt by big restructuring costs and sluggish revenue.

The supplier of office furniture and workspace services said it broke even, posting neither a profit nor loss.

Results included $12.4 million in gains on the rising value of company-owned life insurance policies and restructuring costs of $17.4 million to consolidate facilities and cut staffing. In June, the company said it will cut 200 jobs, or about 2 percent of its work force.

Steelcase earned $31.4 million, or 23 cents per share, a year earlier.

Revenue fell 36 percent to $587.1 million from $901.8 million because of unfavorable exchange rates and weakness across many markets worldwide.

Analysts polled by Thomson Reuters, who usually exclude one-time items, expected profit of a penny per share and revenue of $597.3 million.

The Grand Rapids, Mich.-based company expects third-quarter revenue to decline to $600 million from $811.3 million a year ago. Analysts expect $613.6 million in sales.

Operating income will be "modestly positive," the company said.