Steelcase revenue falls 7 percent to $758 million
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GRAND RAPIDS, Mich. - Contract furniture maker Steelcase Inc. reported sales of $758 million during the second quarter, a 7 percent drop. Net income of $38.2 million was up about $1 million from a year ago.
 
Falling energy markets hurt results, the company says. "Brexit and other political factors are contributing to persistent headwinds, impacting our expectations for the second half of the year," said Jim Keane, president and CEO, who offered a positive spin. 
 
"While the domestic economic and political environments remain uncertain, Americas orders improved in August and early September on the strength of new products, our project opportunity pipeline for the next twelve months has expanded, and we are expecting growth in the third quarter compared to the prior year."
 
"In the Americas, we launched an additional eight new products, enhancements and line extensions during the last three months, bringing the calendar year-to-date total to 25, and we have plans for an additional 15 introductions over the balance of the calendar year," said  Keane.  "These accelerated product development efforts, strong demand for our newer products and other actions all contribute to our expectation that the Americas business will return to year-over-year growth in the third quarter of fiscal 2017.
 
Steelcase joins HNI, which also reported faltering contract furniture sales this quarter. Keane said efforts at implementing lean manufacturing in its Europe, Asia, and emerging marketings, should improve its margins.
 
"Our operating metrics for on-time deliveries and quality also showed consistent improvement," Keane said. "We continue to shift our efforts towards implementing lean, a mindset of continuous improvement, and ongoing investments in our new footprint."

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Bill Esler | ConfSenior Editor

Bill wrote for WoodworkingNetwork.com, FDMC and Closets & Organized Storage magazines. 

Bill's background includes more than 10 years in print manufacturing management, followed by more than 30 years in business reporting on industrial manufacturing in the forest products industries, including printing and packaging at American Printer (Features Editor) and Graphic Arts Monthly (Editor in Chief) magazines; and in secondary wood manufacturing for WoodworkingNetwork.com.

Bill was deeply involved with the launches of the Woodworking Network Leadership Forum, and the 40 Under 40 Awards programs. He currently reports on technology and business trends and develops conference programs.

In addition to his work as a journalist, Bill supports efforts to expand and improve educational opportunities in the manufacturing sectors, including 10 years on the Print & Graphics Scholarship Foundation; six years with the U.S. WoodLinks; and currently on the Woodwork Career Alliance Education Committee. He is also supports the Greater West Town Training Partnership Woodworking Program, which has trained more than 950 adults for industrial wood manufacturing careers. 

Bill volunteers for Foinse Research Station, a biological field station staddling the border of Ireland and Northern Ireland, one of more than 200 members of the Organization of Biological Field Stations.