Steelcase, Inc. (NYSE:SCS)

NetscribeRetail (95.38) Submitted: 3/27/2007 9:07:29 AM : Start Price: $14.87 SCS Score: -39.83

Steelcase (SCS) is the world’s leading designer, marketer and manufacturer of office furniture. The company has manufacturing facilities in over 35 locations and distributes products through a network of independent dealers in more than 900 locations around the world. The company offers a range of products with a variety of aesthetic options and performance features.

The office furniture industry in which Steelcase operates is a highly competitive market and its outlook is influenced by growth in office sector. With factors like decline in unemployment rate in U.S. by 60 bps to 4.5% in December 2006 combined with a rise in real wage by 1.7% indicates a favorable office outlook. According to Business and International Furniture Manufacturer’s Association (BIFMA) U.S. office furniture market is expected to increase by 7.3% during 2007.

The company has a competitive advantage on account of its huge size, which can be clearly seen from its revenue for fiscal 2006 at $2.9 billion, while its nearest competitor Herman Miller hovering around $1.7 billion for the same period. Its enormous size and strong market position enables the company to gain economies of scale and enhances its ability to compete against regional players. Moreover, its growing presence in international market makes it less susceptible to any economic downturn in single market.

The company’s top-line for nine months 2007 has improved by 8.9% on account of increased contribution from international segment. Steelcase has recently acquired Posterloid, which would enable the company to further strengthen its leadership position in market. The gaining momentum in job growth rate indicates a favorable environment to office sector, which in turn should boost the demand for Steelcase product.

bclark3 (< 20) Submitted: 3/7/2007 5:46:41 PM : Start Price: $14.39 SCS Score: -40.06

Well-managed, utilizing lean-manufacturing, significant cost reductions in place, reduced mfr plant sizes and output is stronger. Cool new products coming in next two years

sjbclb (43.55) Submitted: 2/19/2007 10:01:15 PM : Start Price: $14.84 SCS Score: -38.43

The economy is on the up swing. Furniture orders follow.