Steelcase Provides Update on Status of Operations, Selected Financial Metrics and Liquidity - Seite 2

As previously announced on March 24, the company also has made significant reductions in its operating expenses during the first quarter of fiscal 2021 by eliminating travel and events, overtime, temporary labor and annual merit increases and scaling back project spending, as well as significantly reducing capital expenditures by delaying longer-term projects.  The company intends to maintain these spending reductions while incoming order levels remain significantly impacted by the global pandemic.

“I am extremely proud of our entire organization as our people have continued to serve our customers’ needs while dealing with unprecedented circumstances,” said Jim Keane, Steelcase president and CEO. “I want to give special recognition to our operations teams who have worked to support essential businesses and produce equipment that is helping healthcare workers and others stay safe.  We are now able to bring more of our hourly workers back and reinstate a portion of the previous base pay cuts for our salaried workforce."

The company also reported the following selected financial results:

• Revenue:
  • Revenue for the fiscal months of March and April decreased 39 percent compared to the prior year, with year-over-year decreases of 21% in March and 60% in April.
  • Through the first three weeks in March, the company estimates revenue increased approximately 10 percent compared to the prior year, then declined significantly over the remainder of March and April while many of the company’s manufacturing facilities and distribution centers were closed under government mandate.
• Orders:
  • Adjusted for currency translation effects and a divestiture, orders declined 31 percent in March and April compared to the prior year. 
  • Orders were relatively flat compared to the prior year during the first three weeks of March, then declined 42 percent over the remainder of March and April compared to the prior year. 

Revenue and order decline by segment March-April Fiscal 2021 vs. March-April Fiscal 2020
		Revenue Decline				Organic Order Decline
Americas		(40)	%			(27)	%
EMEA		(36)	%			(44)	%
Other category		(36)	%			(37)	%
Steelcase Inc.		(39)	%			(31)	%

“Order patterns between late March and the end of April have reflected significant declines and volatility compared to the prior year, with weekly declines ranging from a low of 23% to a high of 60% (during the week impacted by an April 2019 price adjustment),” said Dave Sylvester, senior vice president and CFO. “Even with the strength of our revenue growth in early March and significant pay and other cost reductions in April, our quarter-to-date profitability has been significantly impacted by the government-mandated shutdowns and related economic uncertainty.  However, our operating cash flows have benefited from reductions in working capital as our accounts receivable collection experience during March and April was largely consistent with historical patterns.”