Steelcase shares touch almost 4-year low

NEW YORK (Reuters) - Shares of Steelcase Inc (SCS.N: Quote, Profile, Research) touched their lowest level since May 2004 on Friday, a day after the office furniture maker posted earnings that missed Wall Street forecasts amid slowing industry growth and inflation.

Shares of the maker of office cubicles, file cabinets and desks were off 3.1 percent, or 37 cents, at $11.48 after falling to $11.39, their lowest intraday level since May 25, 2004, according to Reuters data.

The world's largest office furniture maker posted fourth-quarter results after markets closed on Thursday that missed analyst estimates and gave a disappointing outlook, citing slowing industry growth and inflation.

The company plans to shutter three facilities and cut between 200 and 250 jobs in North America to reduce costs as commodity prices have risen and sales in its finance, insurance and real estate -- or FIRE -- sector declined over the fourth quarter.

North America organic revenue will likely decline in the first quarter by low to mid single-digits, said company Chief Executive Officer Dave Sylvester, in a conference call with analysts and investors on Friday.

"We are beginning to experience inflationary headwinds as it relates to steel, steel component parts, diesel fuel, and other petroleum-based commodities," added Sylvester, saying that inflation is expected to increase first-quarter company costs by about $5 million to $7 million.

In response to a question about the full-year impact of higher costs, Sylvester said the impact of inflation could be in the "ballpark" of $20 million to $28 million.

FOURTH-QUARTER

Net income was $30.6 million, or 22 cents a share, compared with $29.3 million, or 20 cents a share, a year ago. Analysts had expected the company to post earnings of 25 cents a share, according to Reuters Estimates.