Steelcase 2Q Earnings Nearly Double

Grand Rapids, MI, September 20, 2006—-Steelcase Inc., reported second quarter profit that nearly doubled, aided by higher sales. The company also forecast a third-quarter profit below analysts’ expectations.

For the quarter ended August 25, the company reported net income of $26.6 million, or $0.18 per share, versus a prior-year profit of $13.8 million, or $0.09 per share. Revenue rose 12 percent to $789.7 million from $702.9 million in the year-earlier period.

Analysts had forecast a profit of $0.18 per share, on projected sales of $781.2 million.

Steelcase forecast third-quarter earnings between $0.14 to $0.19 per share, including aftertax restructuring charges of $2 million to $6 million.

Analysts’ consensus view for the third quarter is$0.21 per share. Steelcase reported earnings of $0.13 per share in the year-ago period, which included $4.6 million in restructuring charges.

Third-quarter sales are expected to increase between 5 percent to 9 percent over last year. Steelcase said North American orders softened in the quarter’s second half, but returned to previous levels in the first few weeks of September.