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Aug 27, 2021
Steelcase Q2 2022 Earnings Report
Reported second quarter revenue and net income decreased compared to the prior year, impacted by supply chain disruptions and inflation.
Key Takeaways
Steelcase reported a decrease in revenue and net income for the second quarter of fiscal year 2022 compared to the prior year. Revenue was $724.8 million, and net income was $24.7 million, or $0.21 per share. The company faced challenges due to supply chain disruptions and significant inflation in steel, logistics, and other commodities.
Second quarter revenue decreased 11 percent compared to the prior year, or 14 percent on an organic basis.
Orders grew 24 percent in the second quarter compared to the prior year.
Gross margin of 28.5 percent in the second quarter represented a decrease of 440 basis points compared to the prior year.
The company expects third quarter fiscal 2022 revenue to be in the range of $755 to $785 million.
Forward Guidance
The company expects third quarter fiscal 2022 revenue to be in the range of $755 to $785 million and earnings per share of between $0.07 to $0.11.
Challenges Ahead
- Projected inflation, net of pricing benefits, of approximately $28 million as compared to the prior year
- Continued supply chain disruptions and related costs similar to the second quarter
- Projected operating expenses of between $195 to $200 million
- Projected interest expense, investment income and other income, net, of approximately $5 million
- A projected effective tax rate of approximately 28 percent
Historical Earnings Impact
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Avg. Return Before/After Earnings
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