Grand Rapids, MI. December 17--Steelcase Inc. said Friday it swung to a profit in the third quarter on an almost 10 percent increase in revenue.
The company reported net income of $10.1 million, or $0.07 per share, easily topping analysts' consensus estimate of $0.04 per share, and the company's own forecast of earnings of break-even to $0.05 per share. The company had a loss of $9.5 million, or 6 cents per share, a year ago.
Revenue rose 9.7 percent to $674.1 million from $614.5 million. Analysts were expecting Steelcase to post revenue of $657 million. Revenue in the latest quarter benefited by $11.2 million from favorable currency translation.
Steelcase said that although it usually experiences a slowdown in the fourth quarter, "given a strong backlog going into the fourth quarter, the company expects significant year-over-year revenue growth." The company expects to report fourth-quarter revenue in line with third-quarter levels and about 20 percent higher from a year ago. It also expects earnings to be about break-even, including anticipated restructuring charges of $3 million to $6 million after taxes in the quarter, and expects to be profitable for the year.
The company posted a loss of 12 cents per share on revenue $563.4 million a year ago.
