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To: Johnny Canuck who wrote (33695)	8/21/2001 10:23:19 PM
From: Johnny Canuck	Respond to of 68426

Fairly good indicator of the contraction of the business environment? ********************************************** Steelcase to Cut 900 to 1,100 Jobs By JAMES PRICHARD Associated Press Writer GRAND RAPIDS, Mich. (AP) - Steelcase Inc. said Tuesday it plans to cut 900 to 1,110 jobs, about 5 percent of its work force, because of a sluggish economy and a weak furniture market. The nation's No. 1 office furniture maker also said its second-quarter earnings will be below expectations. In the next 90 days, the Grand Rapids-based company will lay off 600 to 700 hourly employees and eliminate 300 to 400 salaried positions in the company's North American operations. Steelcase said it expects to record an after-tax charge of $7 million, or 5 cents per share, in the second quarter to cover the cost of the job cuts. ``We anticipated a challenging business environment, and earlier in the year forecast a revenue decline of up to 15 percent,'' said James P. Hackett, Steelcase's president and chief executive officer. ``The most current economic projections make a work force reduction a necessary, yet difficult, step we must take to run our business more efficiently and meet the needs of our customers.'' He said the company would stick with its business plans as it worked through what he called an ``unprecedented industry decline.'' Steelcase expects second quarter earnings to be in the range of 5 cents to 8 cents a share, before the one-time charges. It cited sharply lower volume in the quarter. Analysts surveyed by Thomson Financial/First Call had been looking for earnings of 13 cents per share. The company plans to release second-quarter results on Sept. 20. ``We are managing through what is clearly a significant, sustained reduction in office furniture demand,'' said Jim Keane, chief financial officer. In late morning trading on the New York Stock Exchange, Steelcase was down 1.4 percent, or 19 cents a share, at $13.79. In its quarterly industry forecast released Thursday, the Business and Institutional Furniture Manufacturers Association in Grand Rapids said it expected office furniture shipments to drop 16 percent in 2001, to $11.14 billion. Next year's forecast calls for an increase of only 0.2 percent, to $11.16 billion. Pam Singleton, an analyst for Merrill Lynch & Co. in New York, said she expects the sales slump to start easing up, though it will be a while before office furniture makers are completely back on track. ``It's not likely that you're going to see measurable improvement until midway through next year,'' Singleton said. ``I think that your declines (will) moderate, but as far as turning positive, it's a ways off.'' In April, Steelcase warned it might lay off about 1,000 employees because of a reduction in orders. The company announced plans in February to cut hundreds of workers and close factories in Colorado Springs, Colo., and Solon, Ohio. As a result, 950 temporary jobs and 160 to 180 salaried jobs were eliminated companywide. All the temporary jobs and 100 of the salaried jobs were cut in Grand Rapids. The company, which reported global revenues of $3.9 billion last year, has more than 20,000 employees and 30 manufacturing locations worldwide. Founded in 1912, Steelcase has led the office furniture industry in sales every year since 1974. Its product portfolio includes interior architectural products, furniture systems, technology products, seating, lighting, storage and related products and services. ---