Steelcase Inc (SCS) has reported a 66.71 percent plunge in profit for the quarter ended Feb. 24, 2017. The company has earned $25.80 million, or $0.21 a share in the quarter, compared with $77.50 million, or $0.62 a share for the same period last year. On an adjusted basis, earnings per share were at $0.22 for the quarter compared with $0.64 in the same period last year. Revenue during the quarter went up marginally by 2.83 percent to $769.10 million from $747.90 million in the previous year period. Gross margin for the quarter expanded 192 basis points over the previous year period to 33.25 percent. Total expenses were 93.43 percent of quarterly revenues, down from 96.55 percent for the same period last year. This has led to an improvement of 312 basis points in operating margin to 6.57 percent.
Operating income for the quarter was $50.50 million, compared with $25.80 million in the previous year period.
However, the adjusted operating income for the quarter stood at $50.90 million compared to $29.50 million in the prior year period. At the same time, adjusted operating margin improved 267 basis points in the quarter to 6.62 percent from 3.94 percent in the last year period.
"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 chief executive officer. "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 the first-quarter 2017, Steelcase Inc expects revenue to be in the range of $725 million to $750 million. The company projects diluted earnings per share to be in the range of $0.13 to $0.17.
Operating cash flow declines
Steelcase Inc has generated cash of $170.70 million from operating activities during the year, down 8.42 percent or $15.70 million, when compared with the last year. The company has spent $48.40 million cash to meet investing activities during the year as against cash outgo of $87.80 million in the last year. It has incurred net capital expenditure of $59.20 million on net basis during the year, down 32.57 percent or $28.60 million from year ago.
The company has spent $105.90 million cash to carry out financing activities during the year as against cash outgo of $90.10 million in the last year period.
Cash and cash equivalents stood at $197.10 million as on Feb. 24, 2017, up 8.36 percent or $15.20 million from $181.90 million on Feb. 26, 2016.
Working capital increases
Steelcase Inc has recorded an increase in the working capital over the last year. It stood at $295.80 million as at Feb. 24, 2017, up 11.04 percent or $29.40 million from $266.40 million on Feb. 26, 2016. Current ratio was at 1.57 as on Feb. 24, 2017, up from 1.48 on Feb. 26, 2016.
Debt remains almost stable
Steelcase Inc has recorded a decline in total debt over the last one year. It stood at $297.40 million as on Feb. 24, 2017, down 0.57 percent or $1.70 million from $299.10 million on Feb. 26, 2016. Total debt was 16.60 percent of total assets as on Feb. 24, 2017, compared with 16.54 percent on Feb. 26, 2016. Debt to equity ratio was at 0.39 as on Feb. 24, 2017, down from 0.41 as on Feb. 26, 2016. Interest coverage ratio improved to 11.74 for the quarter from 5.86 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
