Steelcase Americas Continues Double-Digit Sales Surge

GRAND RAPIDS, MI - Steelcase Inc.'s office and contract furniture sales in the Americas continued their strong double-digit pace in the company's first quarter.

Steelcase reported Q1 net income on revenues of $675.2 million compared to net income of $7.5 million on  $639.4 million in revenue for Q! of 2011.

Organic sales iof Steelcase products in North, Central and South America increase 14% compared to a year ago. Steelcase, which is celebrating its 100th anniversary, noted that revenue growth in the Americas was broad-based and included a higher mix of business from some of the company's largest corporate customers.

Gains in the Americas were offset by an 11% organic sales decline in Europe, the Middle East and Africa (EMEA).

"The Americas achieved double-digit organic revenue growth for the seventh consecutive quarter and posted an adjusted operating income margin of 8.9 percent -- a significant improvement from 6.9 percent in the prior year," said James Hackett, president and CEO. "We expect the momentum in the Americas to continue in the second quarter."

"The EMEA results, while disappointing overall, were also negatively impacted by the timing of order patterns and certain project shipments," said David Sylvester, senior vice president and CFO. "We expect improved results in the second quarter based on recent order growth and continued efforts to improve our business model across EMEA."

Steelcase said it expects second quarter sales, bolstered by a May 2011 price increase, to range between $715 million and $740 million.

"The momentum in our performance and the multiple awards won by our brands at this month's NeoCon trade show are further evidence that the market is responding to our insight-led innovation," Hackett said. "Our ability to leverage our research to design for current and future workplace needs is a vital competitive advantage."