Steelcase Reports Third Quarter Results

GRAND RAPIDS, Mich., Dec. 19, 2012 (GLOBE NEWSWIRE) -- Steelcase Inc. (NYSE:SCS) today reported third quarter revenue of $727.2 million and net income of $23.6 million, or $0.19 per share. Excluding restructuring costs, adjusted earnings were $0.22 per share. Revenue and earnings per share were in-line with company estimates. Steelcase reported $719.4 million of revenue and earnings of $0.17 per share in the third quarter of the prior year, including restructuring costs of approximately $0.02 per share.
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Organic revenue growth in the third quarter was 1 percent after adjusting for $8.2 million of unfavorable currency translation effects and a favorable impact of $6.0 million from recent dealer acquisitions. The Americas posted 3 percent organic growth over the prior year while EMEA experienced a 1 percent organic decline. Revenue continued to include a higher mix of project business from some of the company's largest corporate customers as compared to prior year.

"We were pleased that the Americas expanded their adjusted operating margin by 110 basis points in the third quarter compared to the prior year, despite modest revenue growth," said James P. Hackett, president and CEO. "While growth rates have moderated, we expect the fourth quarter will mark the twelfth consecutive quarter of organic revenue growth in the Americas."

Current quarter operating income of $38.4 million compares to $38.2 million in the prior year. Excluding restructuring costs, third quarter adjusted operating income of $44.4 million compares with $42.0 million in the prior year. Strength in the Americas was largely offset by lower profitability in EMEA and the Other category.

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