Steelcase Predicts Loss In New Quarter

GRAND RAPIDS, Mich. (AP) — Steelcase Inc., a maker of office furniture, said Tuesday it expects to post a loss in the current quarter amid a sharp downturn in revenue.

Steelcase declined to give a detailed forecast for the fiscal year that began Feb. 28 but said it could post an operating profit excluding restructuring costs even if sales fall 20 to 25 percent.

The Grand Rapids-based company said it expects to report a net loss of 13 to 23 cents per share in the fiscal first quarter ending in May. That would include about $4 million in after-tax restructuring costs.

In the same quarter last year, the company earned 16 cents per share despite $4.7 million in after-tax restructuring costs.

Steelcase said first-quarter revenue should be $525 million to $575 million, compared with $816 million a year earlier.

The company said recent orders have shown modest seasonal gains after accelerating declines throughout most of the December-through-February quarter. The company expects revenue to be reduced $47 million by unfavorable currency-exchange rates and $11 million by divestitures.