Steelcase Profit Edges Down On Costs - Update

(RTTNews) - Office furniture maker Steelcase Inc. (SCS), Wednesday reported a marginal drop in third-quarter profit, hurt by operating expenses and goodwill impairment charges. Nonetheless, results for the quarter topped Wall Street estimates.

Sales for the quarter climbed eight percent on growth in the Americas, while Europe, Middle East and Africa's contribution was meager.

Grand Rapids, Michigan-based Steelcase posted third-quarter net income of $23 million, compared with $23.6 million last year. On a per-share basis, earnings were unchanged at $0.18.

On average, four analysts polled by Thomson Reuters expected earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.

Results for the recent quarter included goodwill and intangible asset impairment charges of about $0.10 per share.

Sales for the third quarter were up at $784.8 million, compared with $727 million a year ago. Analysts expected revenues of $766 million for the quarter.

Growth was mainly led by the Americas region, where prospects appear bright due to the launch of its Gesture line of chairs, the company said.

Operating expenses were higher at $190 million, compared with $185 million in the prior year, due to marketing, product development and other initiatives.

For the fourth quarter, the company expects earnings of $0.22 to $0.25 per share, including restructuring benefits of about $0.07 per share, and sales of $760 million to $785 million. Analysts currently expect earnings of $0.23 per share on sales of $763.4 million for the quarter.

Steelcase also announced a cash dividend of $0.10 per share.

Steelcase stock closed Wednesday at $15.61, up $0.39 or 2.56%, on a volume of 698 thousand shares on the NYSE. In after hours, the stock gained $0.39 or 2.50%, at $16.00.