Steelcase profit, revenue surge in 2Q

Higher revenue, lower restructuring costs drive twofold jump in Steelcase' 3Q earnings

Associated Press

GRAND RAPIDS, Mich. (AP) -- Steelcase Inc. said Wednesday that its second-quarter net income grew more than twofold, as the office furniture maker's revenue rose and it recorded lower restructuring costs.

The company said net income grew to 29.5 million, or 23 cents per share, for the three months ended Aug. 24. That compares with net income of $11.9 million, or 9 cents per share, in the comparable quarter last year.

Stripping out restructuring costs, adjusted earnings amounted to 25 cents per share.

Analysts' consensus forecast called for adjusted net income of 19 cents per share, according to FactSet.

Revenue surged to $744.9 million from $700.5 million. Analysts had expected $728.3 million in revenue.

Management said order growth in the quarter was 8 percent above year-ago levels.

Steelcase anticipates earnings per share in the third quarter will range from 19 cents to 23 cents per share, excluding restructuring costs of about 3 cents a share. Analysts have forecast earnings of 24 cents per share.

The company expects revenue in the third quarter will range from $710 million to $735 million. Analysts are projecting revenue of $752.7 million.

Steelcase shares rose 55 cents, or 5.8 percent, to $10.10 in extended trading following the release of the earnings report. They ended regular trading up 5 cents to $9.55.

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