Steelcase Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended August 26, 2016; Provide Earnings Guidance for the Third Quarter of Fiscal 2017; Provides Tax Rate for the Balance of Fiscal 2017; Provides CapEx Guidance for the Fiscal Year 2017
September 21, 2016 at 04:01 pm
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Steelcase Inc. reported unaudited consolidated earnings results for the second quarter and six months ended August 26, 2016. For the quarter, the company reported revenue of $758.0 million against $819.0 million a year ago. Operating income was $61.9 million against $60.1 million a year ago. Income before income tax expense was $59.6 million against $58.5 million a year ago. Net income was $38.2 million against $37.2 million a year ago. Diluted earnings per share was $0.31 against $0.30 million a year ago. Diluted earnings per share, adjusted was $0.32 against $0.35 a year ago. Adjusted operating income was $62.2 million against $71.4 million a year ago.
For the six months, the company reported revenue of $1,476.8 million against $1,524.5 million a year ago. Operating income was $95.2 million against $93.6 million a year ago. Income before income tax expense was $91.3 million against $90.0 million a year ago. Net income was $57.6 million against $57.2 million a year ago. Diluted earnings per share was $0.47 against $0.45 a year ago. Net cash provided by operating activities was $20.1 million against $53.7 million a year ago. Capital expenditures was $26.8 million against $47.4 million a year ago. Adjusted operating income was $100.1 million against $106.8 million a year ago.
The company expects to report diluted earnings per share between $0.32 to $0.36 for the third quarter of fiscal 2017, including approximately $0.01 per share of restructuring costs. This estimate includes an anticipated significant year-over-year improvement in EMEA cost of sales as a percentage of revenue, primarily due to the continued stabilization and improvement of the industrial model. Steelcase reported diluted earnings per share of $0.28 and adjusted earnings per share of $0.30 in the third quarter of fiscal 2016. The company expects third quarter 2017 revenue, of $795 million to $820 million and diluted earnings per share, adjusted of $0.33 to $0.37.
The company continue to estimate effective tax rate for the balance of fiscal 2017 will approximate 36%.
The company estimate capital expenditures for the full year will approximate $75 million to $85 million. This estimate excludes expected proceeds from the sale of an existing aircraft.
Steelcase Inc. is engaged in furnishing the work experience in office environments. The Company, through its brands Steelcase, AMQ, Coalesse, Designtex, HALCON, Orangebox, Smith System and Viccarbe, offers a comprehensive portfolio of furniture and architectural products and services designed to help customers create workplaces. Its furniture portfolio includes furniture systems, seating, storage, fixed and height-adjustable desks, benches and tables and complementary products such as work accessories, lighting, mobile power and screens. Its seating products include task chairs that are ergonomic, seating that can be used in collaborative environments and casual settings, and specialty seating for specific vertical markets such as education and healthcare. Its interior architectural products include full and partial height walls and free-standing architectural pods. Its services include workplace strategy consulting, lease origination services and furniture and asset management.
Steelcase Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended August 26, 2016; Provide Earnings Guidance for the Third Quarter of Fiscal 2017; Provides Tax Rate for the Balance of Fiscal 2017; Provides CapEx Guidance for the Fiscal Year 2017