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Feb 29, 2020
Steelcase Q4 2020 Earnings Report
Steelcase reported strong Q4 2020 results, with revenue increasing by 4% and net income significantly rising due to the sale of PolyVision, despite initial COVID-19 impacts.
Key Takeaways
Steelcase reported a strong fourth quarter with revenue of $946.2 million and net income of $66.5 million, including gains from the sale of PolyVision. Adjusted earnings per share increased by 34% compared to the prior year. The company's performance was driven by growth in EMEA and the Americas, despite initial impacts from COVID-19.
Revenue increased by 4% compared to the prior year, reaching $946.2 million.
Net income was $66.5 million, or $0.55 per share, including a gain from the sale of PolyVision.
Adjusted earnings per share increased by 34% compared to the prior year, reaching $0.39 per share.
Orders grew by 7% in the fourth quarter, led by strong growth in EMEA and the Americas.
Steelcase
Steelcase
Forward Guidance
Due to the COVID-19 crisis interrupting operations, Steelcase is unable to provide meaningful estimates of revenues or earnings per share for fiscal year 2021.
Positive Outlook
- Strong backlog entering fiscal 2021.
- Strong orders entering fiscal 2021.
- Growing pipeline, particularly in EMEA and the Americas.
- Actions being taken will protect people and relationships with customers, dealers, and suppliers.
- Actions will protect the company’s capital, so they can navigate through this crisis and emerge strong and ready to compete.
Challenges Ahead
- COVID-19 crisis has interrupted operations.
- Temporary reduction or suspension of operations at many manufacturing locations and distribution centers around the world.
- Significantly reduce the company's ability to make and ship products and therefore recognize revenue and generate cash beginning in the first quarter of fiscal 2021.
- Finished goods inventory could increase as customers face their own local closures and are unable to receive products.
- Raw material and work in process inventories also could increase as it receives order cancellations.