This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Steelcase Announces Additional Consolidation Of North American Manufacturing Facilities

GRAND RAPIDS, Mich., Jan. 12, 2011 (GLOBE NEWSWIRE) -- Steelcase Inc. (NYSE:SCS) today announced the planned closure of three manufacturing facilities in North America as part of its ongoing efforts to improve the fitness of its business and strengthen the company's long-term competitiveness. The company expects to move production within these facilities to other Steelcase locations in North America over the next eighteen months.   

The company estimates the cash restructuring costs associated with these actions will be approximately $45 million, with the majority relating to workforce reductions and some additional cost for manufacturing consolidation and production moves. The company estimates the consolidation will generate annualized savings of approximately $35 million once fully implemented.

Steelcase expects the restructuring costs associated with these actions incurred during the fourth quarter of fiscal 2011 will approximate $0.04 per share. Accordingly, the company is updating its earnings guidance for restructuring costs expected to be incurred in the fourth quarter of fiscal 2011. The company now expects to report net income of $0.07 to $0.11 per share for the fourth quarter of fiscal 2011, including net restructuring costs of approximately $0.02 per share. These revised estimates supersede the December 16, 2010 announcement that the company expected to report net income of $0.11 to $0.15 per share in the fourth quarter of fiscal 2011, including a net restructuring credit of $0.02 per share.

"We continue to make improvements to our industrial system, which have left us with excess capacity to support current and anticipated future demand," said James P. Hackett, president and CEO. Mr. Hackett concluded, "Actions such as these are never easy, but reflect the need for the organization to be as fit as possible in the highly competitive environment in which we operate. The changes we are making are designed to support our customers with a more flexible and agile industrial model for the future."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs