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May 29, 2020
Steelcase Q1 2021 Earnings Report
Reported a decrease in revenue due to government mandates limiting manufacturing and fulfillment, resulting in a net loss.
Key Takeaways
Steelcase reported a significant decrease in revenue for the first quarter of fiscal year 2021, primarily due to the impact of the global pandemic. Revenue decreased by 41% compared to the prior year, leading to a net loss of $38.1 million. The company implemented cost-saving measures, including temporary layoffs and salary reductions, to mitigate the financial impact.
First quarter revenue was $482.8 million, a 41% decrease compared to the prior year.
Net loss was $38.1 million, or $0.33 per share, including a $17.6 million non-cash goodwill impairment charge.
Adjusted net loss was $20.5 million, or $0.18 per share.
Orders declined 34% compared to the prior year, with declines across all segments.
Forward Guidance
Steelcase expects second quarter revenue and operating results will benefit from the high level of backlog and maintaining salary reductions and other cost containment efforts, and by the end of the second quarter, anticipates having positive adjusted operating income for the year to date.
Positive Outlook
- High level of backlog.
- Maintaining salary reductions.
- Maintaining other cost containment efforts.
- Anticipate having positive adjusted operating income for the year to date.
- Strength of liquidity position will provide ballast over the course of the year.
Challenges Ahead
- Uncertain environment for customers.
- Contemplating how to support people working from home.
- How to safely return to office-based work.
- Economic uncertainty.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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