don't need desks or the stuff you put on them..<g>
quote.bloomberg.com
Steelcase Has 2nd-Qtr Loss on Slow Furniture Sales (Update1)
By Josh Fineman
Grand Rapids, Michigan, Sept. 23 (Bloomberg) -- Steelcase Inc., the biggest U.S. office furniture maker, had a second- quarter loss as demand fell. Third-quarter sales will be the lowest since an industry slump began in December 2000, the company said.
The loss was $7.3 million, or 5 cents a share, in the quarter ended Aug 23. That compares with net income of $6.5 million, or 4 cents, a year earlier, the company said. Sales fell 17 percent to $659.3 million from $792.5 million.
Third-quarter revenue will be below the company's breakeven point of $650 million and it will report a loss, before expenses, of 5 cents to 10 cents a share, the Grand Rapids, Michigan-based company said.
Steelcase plans to cut 500 to 800 more jobs in North America by the end of its fiscal year in February, spokesman Allan Smith said. It has cut 6,600 positions globally since December 2000. The new job cuts represent about 6.1 percent of the company's workforce in North America of 13,200.
The company will incur costs of $4 million to $7 million in the third quarter related to the job cuts, partly offset by a gain of $1 million for the sale of real estate in Southern California. Steelcase will also have fourth-quarter costs of $8 million to $12 million for employee reductions, which will be offset by gains of $8 million to $12 million from the sale of real estate.
Steelcase shares fell 62 cents to $12.35 as of 4 p.m. in New York Stock Exchange composite trading. They've fallen 16 percent this year. |
