Steelcase Suffers a 2Q Plunge in Revenue

Steelcase Inc. (Grand Rapids, Mich.) — supplier of furniture, materials and a variety of commercial interior products — reported a 17 percent decline in revenues for its second quarter ended Aug. 23, 2002.

The company said “revenue continues to track substantially below historic quarterly levels due to lower business capital spending levels and reduced industry-wide demand.”

“We exceeded expectations and earned a small profit before non-recurring charges this quarter, despite revenue that is 36 percent lower than two years ago,” said cfo James Keane. “Steelcase employees around the world have been focused on reducing our break-even point and returning to profitability.”

The company also announced that James Stelter will leave his position as svp of sales, marketing and dealer alliances to “pursue other interests outside the company” after 25 years with Steelcase.

For the balance of the fiscal year, Steelcase expects an environment of increasing competitive pressure combined with continued soft industry-wide demand. “Our outlook is consistent with recent economic reports suggesting that North American business capital spending stalled in August, as corporate bankruptcies, accounting issues and a falling stock market reduced business confidence,” Keane said. “Leading indicators in our business, such as order rates and bid activity, point to a likely double dip that will begin with our third quarter shipments and continue into the fourth quarter.”

The company said it expects that third quarter revenue will be the lowest since the industry downturn began, and that it expects to incur a loss, before non-recurring charges, in the range of $(0.05) to $(0.10) per share in the third quarter.

Steelcase is a $3.1 billion Fortune 500 company that makes furniture systems, seating, lighting, storage, architectural and technology products and related products and services.