By Kailyn Rhone

Steelcase posted lower profit but higher revenue in its fiscal third quarter, driven by its sales growth in the company's Americas unit.

The Grand Rapids, Mich., office-furniture company on Wednesday posted a profit of $19.1 million, or 16 cents a share, compared with $30.8 million, or 26 cents a share, in last year's quarter.

Adjusted per-share earnings were 30 cents, up from 29 cents a year prior.

Revenue rose 2% to $794.9 million from $777.9 million a year earlier.

The company's Americas unit revenue grew 5% to $614.7 million, led by growth across its customer segments such as government, large corporate, healthcare and education.

Steelcase's international revenue declined 6% and fell below its expectations because of customer-driven shipment delays and low demand, the company said.

Chief Financial Officer Dave Sylvester said the company implemented additional restructuring changes and other cost reductions during the third quarter, which are projected to drive around $5 million of annualized cost savings by the start of fiscal 2026.

At the end of the third quarter, the company's backlog was around $664 million, down 5% compared to the prior year. Orders in the first three weeks of the fourth quarter grew 15% compared to last year.

For its fiscal fourth quarter, Steelcase guided for revenue between $770 million and $795 million, per-share earnings between 17 cents and 21 cents, and adjusted earnings between 20 cents and 24 cents.

For fiscal 2025, the company said it expects its adjusted per-share earnings outlook to exceed company targets. It previously guided for between 85 cents and $1.

Write to Kailyn Rhone at kailyn.rhone@wsj.com

(END) Dow Jones Newswires

December 18, 2024 17:08 ET (22:08 GMT)

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