Steelcase Q1 revenues dip, second quarter looks bright

Steelcase officials say education orders will boost second quarter revenues. Their research shows the way people learn is as unique as their fingerprints and classrooms are highly diverse and curriculums need to be designed from the start to meet this diversity.

Photo By Steelcase

GRAND RAPIDS, Mich. — Steelcase Inc. reported earnings of $10.9 million in its fiscal first quarter on lowered revenue of $727.3 million. orders were up by 8% for the quarter.

While revenues dipped by 3% in the quarter, the office furniture maker expects fiscal second quarter revenues to range between $850 million to $875 million. he company reported revenue of $854.6 million in the second quarter of fiscal 2024. The projected revenue range translates to a decline of 1 percent to growth of 2 percent compared to the prior year, or organic growth of 1 to 4 percent.

The strong, projected outlook was driven by education and large corporate customers, and the first half outlook reflects a pace towards higher-end, full-year income targets.

The Grand Rapids, Michigan-based company said it had net income of 9 cents per share. Earnings, adjusted for one-time gains and costs, came to 16 cents per share. For the current quarter ending in August, Steelcase expects its per-share earnings to range from 36 cents to 40 cents.

Revenue decreased 3 percent in the first quarter compared to the prior year, with a 3 percent decline in both the Americas and International. On an organic basis, revenue decreased 1 percent, with a 1 percent decline in the Americas and a 2 percent decline in International. The Americas revenue was impacted by a lower beginning backlog compared to the prior year (which was affected by supply chain disruptions and extended delivery timeframes), partially offset by order growth.

Orders (adjusted for the impact of divestiture and currency translation effects) grew 8 percent in the first quarter compared to the prior year, including 10 percent growth in the Americas and 2 percent growth in International. The order growth in the Americas was primarily driven by project business with large corporate customers and our education business. The order growth in International was driven by 4 percent growth in EMEA, partially offset by a 3 percent decline in Asia Pacific. The growth in EMEA reflected growth in most markets and a decline in Germany, and the decline in Asia Pacific included declines in most markets partially offset by strong growth in India.

“We are pleased with our first quarter results, which reflected higher than expected adjusted earnings improvement and 10% order growth in the Americas,” said Sara Armbruster, president and CEO. “Similar to the prior two quarters, our order growth was driven by our large corporate customers, as companies make investments in their office space to support the transformation of work and other workplace strategies. Additionally, we're excited about our education business, which delivered strong first-quarter order growth at the start of the peak education season.”


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Larry Adams | Editor

Larry Adams is a Chicago-based writer and editor who writes about how things get done. A former wire service and community newspaper reporter, Larry is an award-winning writer with more than three decades of experience. In addition to writing about woodworking, he has covered science, metrology, metalworking, industrial design, quality control, imaging, Swiss and micromanufacturing . He was previously a Tabbie Award winner for his coverage of nano-based coatings technology for the automotive industry. Larry volunteers for the historic preservation group, the Kalo Foundation/Ianelli Studios, and the science-based group, Chicago Council on Science and Technology (C2ST).