Monday, September 29, 2008

Steelcase Clueless About Future?

Steelcase (SCS) issued Q2 results and supposedly beat the street estimates. Their stock has been dropping for the past year. In a sense they are an economic indicator. You do not buy office furniture if you expect poor results.

The earnings release would delight a book-keeper but the management comments leave the financial analyst wanting more. Essentially they are pointing to commodity inflation as squeezing margins. But international sales are looking very good. James P. Hackett, president and CEO. promises to monitor world events. No substantive comments about specific markets, product lines, customer dynamics or even what they are doing about commodity inflation other than just trying to charge more.

Come on James Hackett investors need more before they buy in.