GRAND RAPIDS, MI -- Steelcase Inc. reported third quarter revenue of $672.6 million and net income of $18.3 million, both ahead of company estimates.
Steelcase said organic revenue growth in the third quarter was 15% over the prior year after adjusting for negative impacts of $21 million from the deconsolidation of dealers completed in the last 12 months and approximately $10 million related to unfavorable currency translation effects.
James Hackett, president and CEO, said, "Our international segment posted organic growth of 20 percent, led by strong performance in Germany, France and the Asia Pacific region, while North America had broad-based organic growth of 16 percent."
"With the improved demand patterns, we are able to demonstrate the earnings power of a much fitter business model," said David Sylvester, vice president and CFO. "Operating margins, excluding restructuring costs, reached 6.8 percent in North America and 5.5 percent in international, where we continue to invest in emerging markets."
Orders grew by more than 20 percent in the International and North America segments in the third quarter, compared to the prior year. The company expects fourth quarter fiscal 2011 revenue to reflect typical seasonal patterns and be in the range of $580 to $605 million.
"Looking forward, we are encouraged by our prospects to realize continued growth in a broader economic recovery, which seems to be gaining additional traction around the world, and we remain committed to strengthening the fitness of our business model," Hackett said.
Read Steelcase's third quarter financial report press release.
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