1. Market Data
December 18, 2013

Steelcase profits dip in Q3

Furniture major Steelcase Inc's profits have marginally dipped in the third quarter, compared to the previous fiscal.

Furniture major Steelcase Inc’s profits have marginally dipped in the third quarter, compared to the previous fiscal.

The company officials have said that this drop was a result of excess operating expenses besides goodwill impairment charges. However, Steelcase continued to top Wall Street estimates for the quarter.

Steelcase sales shot up to 8% in the United States of America. But then the sales in Middle East, Africa and Europe was minimal, the report said.

The figures of profits for third-quarter, as reported, touched $23m, which was less by $0.6m compared to previous year.

Per each share this year, the goodwill and miscellaneous charges (including asset impairment charges) were around $0.26, said analysts.

In America alone, the sales touched $748.8m, compared to $727m previous year. The analysts, however, expected the figure to reach $766m.

The company said that the sales have gone up in the United States mainly because of Gesture line of chairs, which it launched recently in the market.

Operating expenses were higher at $190m, compared with $185m in the prior year, due to marketing, product development and other initiatives.

The company has also said that it’s expecting better profits in its fourth quarter, which should be around $0.25 per share and reach a mark of at least $785m.

The analysts, on the other hand, expect the figure to not dip beyond $763m with minimum share price of $0.23.