Steelcase, Inc. - SCS STOCK NEWS

Steelcase (NYSE: SCS) announced the appointment of Linda Williams to its Board of Directors. Williams, currently the Chief Audit Executive and Vice President of Enterprise Risk Management at Hewlett Packard Enterprise (NYSE: HPE), brings over 20 years of finance and risk management experience. Her expertise includes cybersecurity, financial management in global environments, and leading major transformation initiatives. Steelcase aims to enhance its board's diversity and skills to better serve its shareholders. The company's FY 2020 revenue was $3.7 billion.

Steelcase reported Q2 revenue of $818.8 million, down 18% year-over-year, with net income of $55.5 million, or $0.47 per share, despite incurring $15.6 million in restructuring costs. The company achieved adjusted EPS of $0.55. Order declines have been moderating, particularly in the Americas, while liquidity remains strong at $684 million. The outlook for Q3 forecasts revenue between $690 million to $725 million, indicating an organic decline of 24% to 27% versus the prior year.

Steelcase will webcast a discussion of its second quarter fiscal year 2021 financial results on September 23, 2020, at 8:30 a.m. ET. A link to the webcast will be available on Steelcase's investor relations site, with a replay accessible after the call. The financial results will be released the day before, on September 22, 2020, post-market close. Steelcase reported revenues of $3.7 billion in fiscal 2020 and has been a leader in creating workplace solutions for over 108 years.

Steelcase (NYSE: SCS) announced permanent cost structure changes affecting 8% of its salaried workforce in the Americas due to ongoing demand declines related to the COVID-19 pandemic. The company will implement early retirements and voluntary separations for about 300 salaried and 160 hourly employees. Although salaries will be reinstated costing approximately $20 million per quarter, savings of around $10 million per quarter from workforce reductions are expected. The second and third quarters will incur restructuring costs of about $30 million, and order patterns have shown a 35% year-over-year decline.

Steelcase reported first-quarter 2021 revenue of $482.8 million, a 41% decline compared to the prior year. The company experienced a net loss of $38.1 million, or $0.33 per share, including a $17.6 million goodwill impairment charge. The Americas segment revenue dropped 42%, while EMEA and Other segments fell 38% and 43% respectively. Despite these declines, the company’s liquidity remains robust at $799 million. Steelcase's backlog stands at $751 million, with expectations of improved revenue in the second quarter due to backlog shipments.

Steelcase Inc. (NYSE: SCS) will host a webcast on July 1, 2020, at 8:30 a.m. ET to discuss its first quarter fiscal year 2021 financial results. The webcast can be accessed at Steelcase Investor Relations. A news release with the results will be issued on June 30, 2020, after market close. Additionally, the company will hold its Annual Meeting of Shareholders on July 15, 2020, at 11:00 a.m. ET, also via webcast, accessible at Virtual Meeting. Replays will be available post-event.

Steelcase Inc. (NYSE: SCS) reports a significant increase in its backlog, now approximately $700 million, representing a 23% growth year-over-year. Manufacturing has resumed as COVID-19 restrictions ease. Revenue for March and April saw a sharp decline of 39%, down 21% in March and 60% in April. To manage costs, the company reduced salaries and hours for salaried employees but is easing these reductions as operations ramp up. Liquidity remains strong at $774 million as of May 1, 2020, aided by borrowings and careful cash management.