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Aug 28, 2020
Steelcase Q2 2021 Earnings Report
Reported second quarter revenue and earnings, benefiting from a strong beginning backlog and cost reduction actions.
Key Takeaways
Steelcase reported a decrease in revenue but an increase in adjusted operating income for the second quarter of fiscal year 2021. Revenue declined by 18% compared to the prior year, but adjusted operating income increased due to significant cost reduction actions.
Second quarter revenue was $818.8 million, a decrease of 18% compared to the prior year.
Net income was $55.5 million, or $0.47 per share, including $15.6 million of pre-tax restructuring costs.
Adjusted earnings were $0.55 per share, excluding restructuring costs.
Year-over-year order decline rates have moderated for four consecutive months.
Forward Guidance
The company expects third quarter fiscal 2021 revenue to be in the range of $690 to $725 million and diluted earnings per share of between $0.07 to $0.13.
Positive Outlook
- As the number of COVID cases declined in Asia Pacific and EMEA, a strong return to the office was observed.
- Companies are utilizing the workplace to drive higher productivity.
- Companies are utilizing the workplace to increase collaboration.
- Companies are utilizing the workplace to promote their culture.
- Momentum is expected to build to bring employees back to work in the U.S.
Challenges Ahead
- Orders declined an average of 38 percent during the first three weeks of September compared to the prior year.
- Orders declined 41 percent in the Americas.
- Orders declined 27 percent in EMEA.
- Orders declined 37 percent in the Other category.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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