Steelcase returns to profit


20 December 2004 – Grand Rapids (MI): Steelcase returned to profit in its Q3 of fiscal 2005 thanks to a steel surcharge and the weak dollar, the company has announced.

Net income was posted at $10.1 million, up from a net loss of $9.5 million in the year ago quarter.

Revenue totalled $674.1 million, up 9.7 per cent from the $614.5 million recorded in the Q3 of fiscal 2004, and up 3.5 per cent from this year’s Q2.

Revenue included $9.6 million from the impact of a steel surcharge implemented in North America during Q1, the company disclosed. Favourable currency translations in the international segment also contributed $11.2 million to revenue compared to last year.

President/CEO James Hackett said: "We continue to build momentum in the form of increased revenues across each of our business segments. We are also improving profitability despite challenges created by rising raw material prices around the world."

Steelcase expects Q4 revenue to be 20 per cent higher than the $563.4 million a year ago.