GRAND RAPIDS, Mich. -- Steelcase Inc. reported fourth quarter revenue of $769.1 million and net income of $25.8 million. Revenue increased 3 percent in the fourth quarter compared to the prior year, while orders increased by 6 percent. The Americas posted revenue growth of 3 percent, which was negatively impacted by continued year-over-year declines in the energy sector. Orders in the Americas grew 5 percent over the prior year.
"We were pleased to exceed our revenue and earnings estimates for the quarter, in an environment that reflects continued uncertainty and intense competition for business," said Jim Keane, president and CEO. "The Americas contributed significantly to our performance exceeding our expectations, as did Asia Pacific, which posted record levels of revenue, orders and operating income in the quarter."
For fiscal 2017, the company recorded $3.032 billion of revenue and net income of $124.6 million. For fiscal 2016, the company recorded $3.060 billion of revenue and net income of $170.3 million.
"Our operating income margin for fiscal 2017 represents the highest level of performance in more than 15 years," said Jim Keane. "The Americas posted organic revenue growth in the second half of fiscal 2017, realizing initial benefits of our investments in growth initiatives, and we believe this momentum will continue into fiscal 2018. Asia Pacific closed the year by posting two consecutive quarters of record orders, and we began fiscal 2018 with a backlog of customer orders in that region which was substantially higher than the prior year."
The order growth in the Americas was driven by project business, while orders related to continuing agreements and marketing programs declined in the quarter. The strong order growth in the Other category was driven by a record level of quarterly orders in Asia Pacific. As a result, the company expects first quarter fiscal 2018 revenue to be in the range of $725 to $750 million, which reflects expected organic revenue growth of 2 percent to 6 percent over the prior year.
"Our project pipeline in the Americas increased again this quarter versus the prior year reflecting the success of our new product introductions and efforts to improve our market share," said Jim Keane. "In further demonstration of our market leadership, we recently announced our partnership with Microsoft to explore the future of work.”
This collaboration includes the development of Creative Spaces that integrate Microsoft Surface devices with Steelcase architecture and furniture, the addition of select Steelcase dealers to the Surface Hub resellers network, and a joint focus on developing technology-enabled workplace solutions built on Microsoft Azure IoT technology. See http://www.steelcase.com.
Have something to say? Share your thoughts with us in the comments below.