No more kidding around. Let's get serious.
:-(
Posted on 03/29/2007 6:22:00 PM PDT by Mr. Brightside
Steelcase numbers best in five years
Thursday, March 29, 2007
By Rob Kirkbride
The Grand Rapids Press
GRAND RAPIDS -- For the first time in five years, Steelcase Inc. today posted yearly sales topping $3 billion while profits surged 110 percent over the previous year.
It was another sign of a robust office furniture industry after Herman Miller Inc. reported surging quarterly profits last week.
In this morning's announcement, Steelcase said this was the fourth-best year in its history for sales. The company's best year was 2001, when it had sales of more than $4 billion.
The Grand Rapids office furniture maker doubled profits to $106.9 million for the year ended Feb. 23, also the best in five years. The company earned 72 cents a share.
"We improved business performance, both financially and with our customers," President and Chief Executive Officer James Hackett said in a statement.
The news is welcome after the company struggled through years of slumping sales and profits. Within three years of posting its best year ever in 2001, sales plummeted nearly in half by 2004. Since then, Steelcase has clawed back, but not before slashing its workforce drastically and closing local plants.
The company now lists its West Michigan employment at 5,000, still among the area's largest employers and still the largest manufacturing employer here.
For the fourth quarter, Steelcase also boosted sales and profits. Sales were $779 million for the quarter, up 5 percent from the $739.3 million it made during the same period last year.
Quarterly profits increased significantly to $29.3 million or 20 cents a share, beating analysts' forecasts. The company estimated profits of 14 to 19 cents a share, while analysts expected 18 cents-per-share profits.
The company benefited from strong international sales and lower taxes.
"We were particularly pleased with the strong improvement in quarterly results achieved again by our international segment and the significant year-over-year improvement in our net income," said David Sylvester, vice president and chief financial officer.
International sales are up 17 percent for the quarter and 14 percent for the year. North American sales were up less than 1 percent for the quarter and 5.8 percent for the year.
For the first quarter of this year, Steelcase said it expects profits will continue to be healthy.
It forecasts earnings for the quarter to be 15 cents to 20 cents per share. The company reported earnings of 12 cents a share last year.
The company does not provide a forecast for the full year, but "does expect to continue its improvements in profitability."
Steelcase's financial results come a week after rival Herman Miller Inc. in Zeeland announced a per-share quarterly profits increase of more than 51 percent.
Steelcase's stock closed at $19.73 Wednesday.
Who cares?
Should be breaking news. LOL
No more kidding around. Let's get serious.
:-(
Related?
when cheapo office furniture just won't do...
No offense meant to anyone, really. It is more a structural integrity thing.
I was thinking about putting "NOT A WILLIE GREEN POST" in the title so people would not get confused and think he was back.
I'm certain willie is back, just undercover.
It's always good news to see manufacturers kickin butt. Here in the NW, its a fantastic economy, with Boeing leading the way again.
Dude!
Hey, you better stop being so "graphic"!
Well, sarbanes-oxley had to end up being good for somebody. Just like they used to say that ISO9000 was just a plot by SteelCase to sell more filing cabinets.
It worked. For a while.
:-)
Who is Herman Miller and where is Zeeland? Is that New Zeeland?
I have worked at the microscope while sitting on 50 year-old office chairs (doubtless at one time graced by far more attractive derrierres (8^D)).
Quality construction holds up. Junk is junk.
I also wonder if, in the age of international terror, there is a market for 'bulletproof' cubicle panels...
That profit is obscene.
They need to be slapped with a windfall profits tax.
/s
But the bad thing is that if you try and move one of their file cabinets by yourself, you'll bust a nut.
I am sure that they only lost all that money so that they could take a tax deduction.
Kramer: "Jerry, all these big companies, they write off everything."
Jerry : How is it a write off?
Kramer : They just write it off.
Jerry : Write it off what?
I do! I work at the company that's been doing very well for the past two years. LOL. Steelcase still has a LOT to do though. Reducing their footprint will help, and they are on their way. Reducing their almost total vertical integration will also help. They also need to take their capital and invest it in R&D.
Nope, that's Zeeland, Michigan just outside Holland, Michigan. Zeeland/Holland is 25 min. west of Grand Rapids. Holland is on the Lake Michigan shore. The West Michigan area is one of the few remaining conservative areas of Michigan, though we are getting our share of immigration/illegals now.
No, they really lost all that money because they were way too fat when 9-11 hit, and they had no plan post 9-11 to cut costs immediately for future growth. In order to sell, they deep discounted their furniture, more than usual, just to stay afloat. They also do the majority of their own manufacturing instead of actual assembly. So, being fat for them was something that was across the board, which is why it has taken so long for them to recover. They still have much to do. Big Blue, as they are called around here, will be much better as Medium-sized Blue.
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