GRAND RAPIDS, Mich., March 23, 2011 (GLOBE NEWSWIRE) -- Steelcase Inc. (NYSE:SCS) today reported fourth quarter revenue of $622.9 million and net income of $10.4 million, or $0.08 per share. Excluding net restructuring costs, adjusted earnings equaled $0.11 per share. Steelcase reported $551.9 million of revenue and a net loss of $(0.10) per share in the fourth quarter of the prior year.
Organic revenue growth in the fourth quarter was broad-based and totaled 24 percent over the prior year after adjusting for negative impacts of $(43) million from deconsolidations and approximately $(6) million related to unfavorable currency translation effects.
"We are very pleased with our results this quarter," said James P. Hackett, president and CEO. "In our North America and International segments, organic revenue growth averaged over 24 percent and was broad-based across product categories and regions. The operating leverage achieved on the incremental sales continues to demonstrate our earnings power. "Current quarter operating income of $19.6 million represents an improvement of $39.7 million over the prior year. Excluding restructuring costs and variable life COLI income, fourth quarter adjusted operating income of $26.7 million improved $38.7 million compared to the prior year driven largely by organic revenue growth and benefits of previous restructuring activities. Current quarter adjusted operating income also included a gain from the IDEO ownership transition of $9 million (net of incremental variable compensation expense), offset by a $4 million impairment charge related to an asset held for sale and $4 million of incremental variable compensation expense associated with a gain on sale of a facility in Canada which was recorded as a restructuring item. Cost of sales improved to 70.0 percent of revenue in the current quarter compared with 71.3 percent in the prior year. Higher absorption of fixed costs associated with the revenue growth in the quarter and benefits from previous restructuring activities were partially offset by higher commodity costs and the impact of deconsolidating IDEO.