Steelcase to Close Plants, Cut Jobs (Reuters)

[Up2Late]

Mon Mar 28, 2005 04:12 PM ET

By Emily Chasan

NEW YORK (Reuters) - Steelcase Inc. (SCS.N: Quote, Profile, Research) , the world's largest office furniture maker, said on Monday it plans to close several Michigan plants in the next two years and lay off 600 people, or about 4 percent of its global work force, in a move to reduce excess capacity and improve profitability.

Steelcase said the plant closings in three locations are essential to achieving its previously stated goal of 35 percent gross margins over the long term.

But Monday's announcement follows a string of closings in the last four years, and one analyst said it may be a sign the company is struggling to hold on to market share. "I'm a little surprised, given the fact that the company has really led investors to believe that plant closings were behind them," said Anthony Chukumba of Morningstar.

Over the next two years Steelcase will take pretax restructuring charges of $25 million to $30 million from the plant closings and disruption charges of $4 million to $7 million.

(more at link)

<http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=8015708&src=rss/businessNews>

[phantom power]

1. Let me guess. They're keeping the foreign plants, and

ditching all the expensive American labor.

[GetTheRightVote]

2. That is probably not a bad guess on the situation, foriegn is better

sacrasm.

:kick:

[HereSince1628]

3. Oh shit! My daughter left LA to take a job with Steelcase in Chicago

She starts new with the company next week! And will have zero seniority...

[Up2Late]

4. I think the Corp attitude is, "let's see if we can make them feel...

...lucky to have ANY job at all.":mad:

[punpirate]

5. Steelcase was...

... one of the largest employers in west Michigan, but no longer. From 2000 through about April, 2004, it had dropped over 5,000 jobs (that's what the reference about surprised investors is all about).

Five years ago, they got a tax break from Michigan to build new plants in Michigan through the MEGA plan....

Sounds as if about all they will have in the west Michigan area in a few years are the corporate offices.

[UrbScotty]

6. That's okay. As long as gays aren't allowed to marry, we're fine.

:eyes:

[Deja Q]

7. Michigan again. From factory closures to religious nuts...

You can hear the toilet flushing.

[slackmaster]

8. Mr. Gorbachev, tear down these cubicles!

:nuke:

[slackmaster]

9. double click double click - sorry

:nuke: