Steelcase Inc. Annual Report for Fiscal Year Ended February 23, 2024

Press release · 2024-04-12 14:31

Steelcase Inc. has filed its annual report for the fiscal year ended February 23, 2024, with the Securities and Exchange Commission. The company’s financial report highlights its performance, market value, and outstanding shares. The report also provides information on the registrant’s securities, filing requirements, and internal control assessments.

Financial Performance Overview

Steelcase is a company that manufactures office furniture and architectural products. In 2024, Steelcase saw improved financial performance compared to 2023, mainly due to price increases implemented over the past two years in response to high inflation.

Revenue and Profits

Revenue was $3.2 billion in 2024, down 2% from 2023. This was driven by lower sales volumes, offset somewhat by price increases.
Net income rose to $81 million in 2024, up from $35 million in 2023.
Earnings per share increased to $0.68, from $0.30 the prior year.

Segment Performance

Steelcase has two business segments:

Americas (76.6% of revenue)

Revenue declined 1%. Organic revenue was flat after adjusting for acquisitions and currency impacts.
Operating income rose 86% to $144 million. This was driven by price increases which offset lower volumes.

International (23.4% of revenue)

Revenue declined 7%. Organic revenue declined 8%.
Operating loss increased by $14 million due to lower volumes and restructuring costs.

Costs and Expenses

Gross margins improved from 28.4% to 32.0%, due to price increases.
Operating expenses rose by $39 million or 180 basis points, mainly due to higher IT costs, variable compensation, and marketing expenses.
The company recorded $22 million in restructuring costs related to workforce reductions.

Cash Flow and Balance Sheet

Operating cash flow increased significantly to $309 million, driven by higher earnings.
The company strengthened its liquidity position, ending 2024 with $807 million in available liquidity.
Debt levels were stable at $446 million. Dividends paid declined to $0.40 per share.

Outlook

Steelcase expects the gradual economic recovery to continue through 2025. The company is investing significantly in a multi-year project to implement a new ERP system beginning in 2026. While this will require upfront investments, it is expected to generate cost savings and efficiency gains in the long run.

The company has leading brands and an innovative product portfolio. By maintaining price discipline, driving operational improvements, and tightly managing costs, Steelcase appears well-positioned to navigate near-term uncertainty while investing for the future.