Thursday, March 29, 2007

Steelcase Results

Steelcase reported their results this a.m.

North American sales are flat for the quarter over quarter, though YOY sales grew about 6%. Herman Miller's sales actually increased 15% over the same period. Clearly North American sales have stagnated

SCS's international operations are going gangbusters.

"As a result of the tax valuation and reserve adjustments made in the fourth quarter, the company's full year effective tax rate was 14.2%, significantly lower than the previous estimate of 34% to 35%. The company believes its fiscal 2008 effective tax rate will be between 34% and 35%." [A nice windfall I might add!]

"Consistent with past practices, the company is not providing full year guidance but does expect to continue its improvements in profitability towards the achievement of its long-term operating income margin of 10%."

Overall, I do not think that these are good results and confirms to me a slowing of cap expenditures in the US.

No comments: