Steelcase, Inc.
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Overview
Steelcase manufactures a wide variety of products, from file cabinets that come with a lifetime warranty to Coach-branded leather office chairs. Steelcase also sells staples, such as tables, desks, and lighting. Its brands include Brayton, Designtex, Details, Leap, Metro, Polyvision, Steelcase, Turnstone, and Vecta. Steelcase offers a variety of services, including workspace planning, interior construction, and project management. In addition the company focuses on high-end furniture and specialty markets through various subsidiaries and affiliates.
Steelcase has agreed to acquire the office furniture business of China-based Ultra Group Holdings for about $13.3 million in a bid to expand its business in Asia. The purchase, which is slated to close in late 2007, will add about 1,000 employees to Steelcase's operations in China.
Steelcase has used acquisitions, such as its purchase of whiteboard maker PolyVision, to expand the company's business in the corporate learning and higher education markets. It also made inroads into the automotive sector with its agreement with Johnson Controls to improve vehicle seats with Steelcase technology. In 2006 the company acquired hospital furniture maker Softcare Innovations and its sister company DJRT Manufacturing. The companies were folded into Steelcase's new health care furniture line, Nurture by Steelcase.
In addition to office furniture, the company also sells prefabricated office buildings and warehouses through its joint venture with The Gale Co. and Morgan Stanley Real Estate Funds. The joint venture, named Workstage, was formed in 1999. Steelcase currently owns 44% of the entity.
A slowing economy has forced the company to close plants. The ongoing consolidation continued through 2005. The consolidation caused some operational issues that the company said led to some $10 million in losses in 2006 in its Wood division.
Basic Financial Information
Company Type / Public - NYSE:SCSHeadquarters
Fiscal Year-End / February
Financial Filings / SEC
2007 Sales (mil.) / $3,097.4
1-Year Sales Growth / 8.0%
2007 Net Income (mil.) / $106.9
1-Year Net Income Growth / 118.6%
Annual Income Statements
Revenue ($mil.) / 3,097.4 / 2,868.9 / 2,613.8
Gross Profit ($mil.) / 947.9 / 846.3 / 745.7
Operating Income ($mil.) / 113.7 / 82.5 / 18.2
Total Net Income ($mil.) / 106.9 / 48.9 / 12.7
Diluted EPS (NetIncome) / 0.71 / 0.33 / 0.09
Top 3 Competitors
· Haworth, Inc.
· Herman Miller
· HNI
In the News
Steelcase Inc. to Acquire Ultra Office Furniture BusinessSeptember 14, 2007, Steelcase Inc. today announced the pending acquisition of one of the leading office furniture manufacturers in China. The transaction will significantly increase Steelcase’s ability to serve customers in the Asia Pacific region.
One of the 100 Best Corporate Citizens
February 14, 2007 – Steelcase Inc. announced today that it has been named one of the 100 Best Corporate Citizens by CRO Magazine. Ranked number 17, Steelcase is the highest-rated of the 24 companies making a debut on this year’s list.
Commitment to Improving Indoor Air Quality
Grand Rapids, MI – February 12, 2007 – Steelcase Inc. today announced that over 20 of its product lines have received Indoor Advantage™ certifications from Scientific Certification Systems (SCS), an independent third-party certifier. The Indoor Advantage certification program confirms adherence to specific indoor air quality emission requirements and recognizes companies that excel in this environmental initiative.
Recognized by EPA for Waste Reduction
October 24, 2006, Steelcase announced today that it has been honored with two awards from WasteWise, an Environmental Protection Agency (EPA) program that helps U.S. organizations reduce municipal solid waste. Winners of the WasteWise awards are selected for accomplishments in waste prevention, recycling collection and buying or manufacturing recycled content products.
Steelcase Receives Pollution Prevention Award
September 19, 2006 - Steelcase Inc. today announced it has received the Most Valuable Pollution Prevention Award from the National Pollution Prevention Roundtable (NPPR), the largest membership organization in the United States devoted solely to pollution prevention. NPPR granted Steelcase this award at a ceremony held today in Washington, D.C. in recognition of the company's 2006 Environmental Report, which was identified as an outstanding, innovative pollution prevention project.
Steelcase Acquires Softcare Innovations
September 6, 2006 - Steelcase Inc. today announced that it has acquired Softcare Innovations Inc, a privately-held manufacturer of healthcare furnishings, with headquarters in Waterloo, Ontario. Steelcase also acquired Softcare's sister company in Waterloo, DJRT Manufacturing Inc.
Sources: Company website and Hoovers.com