Steelcase 2Q profit drops 6 pct, hurt by Europe

Steelcase says 2Q profit drops 6 percent, hurt by weakness in Europe, restructuring costs

Associated Press

GRAND RAPIDS, Mich. (AP) -- Steelcase Inc. said Wednesday that it second-quarter net income fell 6 percent as the office furniture maker was dragged down by restructuring costs and weakness in Europe.

The Grand Rapids, Mich., company reported after the market closed that it earned $27.6 million, or 22 cents per share, for the quarter that ended Aug. 23. That is compared with $29.5 million, or 23 cents per share, in the second quarter last year. Both quarters included restructuring costs of 2 cents per share.

Revenue increased nearly 2 percent, to $757.6 million versus $744.9 million, as higher revenue in the Americas offset a 5 percent decline its region that includes Europe, the Middle East and Africa. The company said the weak economy in Europe hurt results.

The quarter fell short of market expectations. Analysts polled by FactSet were anticipating earnings of 25 cents per share on revenue of $773.3 million.

Steelcase said it expects to earn between 23 and 27 cents per share for the third quarter. It forecast revenue between $755 million and $780 million.

Analysts had forecast earnings of 26 cents per share on revenue of $757.1 million.

Shares fell 85 cents, or 5.4 percent, to $15.65 in after-hours trading. Its stock added 21 cents to close regular trading at $15.65.

Rates

View Comments (0)