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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.
Steelcase
Steelcase
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.
- The year-over-year comparison also reflects the impact of the timing of the U.S. Thanksgiving holiday which will fall in the third quarter of fiscal 2021 compared to the fourth quarter of fiscal 2020.