GRAND RAPIDS, MI -- Steelcase Inc. (NYSE:SCS) reported second quarter revenue of $599.8 million and net income of $2.8 million, both ahead of company estimates.
"We are pleased to report positive momentum in our second quarter, with a highlight being organic revenue from our international customers rising 15 percent over the prior year," said James Hackett, president and CEO. "Our international and North America segments expect a solid third quarter, fueled by double-digit order growth this quarter compared to the prior year."
The current quarter operating profit of $6.5 million represents an improvement of $7.5 million over the prior year operating loss of $(1.0) million, which included $9.8 million of income associated with an increase in cash surrender value of variable life company-owned life insurance policies.
"I am pleased with the expansion we are seeing in our operating margin at this stage of the economic recovery," said David C. Sylvester, vice president and CFO. "We experienced good operating leverage from volume growth across our business, and improvements at PolyVision, Asia Pacific and Coalesse contributed significantly to the operating results this quarter."
Orders grew by double-digit percentages in the international and North America segments in Q2, compared to the prior year, and reflected an increase in project activity compared to recent quarters. The company aaid it expects third quarter fiscal 2011 revenue to be in the range of $625 to $650 million. Adjusting for these impacts, the company projects organic revenue growth in the range of 8 to 13 percent over the prior year.
Read Steelcase Inc.'s press release.
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