Steelcase Inc. (NYSE: SCS) stock rose over 14.81% on March 25th, 2020 (Source: Google finance) and continued its bullish momentum in the pre-market session of March 26th, 2020 rising over 1.7%. The company in the fourth quarter of FY 20 has reported 34% improvement in adjusted EPS to $0.39. The company has delivered 4% rise in the revenue in the fourth quarter compared to the prior year and has fallen by 1% on an organic basis after the adjustment for currency translation effects and about $48 million associated with an extra week of shipments in the current quarter. The results shows the initial impacts of the coronavirus (COVID-19) which had reduced the shipments in China in the fourth quarter by about $7 million. The organic decline is on the back of the Americas and Other category, which was partially offset by strong growth in EMEA. The Americas fell 3 percent organically compared to the prior year, which posted growth of 17% compared to the fourth quarter of fiscal 2018, and was unfavorably impacted by the timing of the U.S. Thanksgiving holiday. The Other category was negatively affected by the customer requested delivery delays in China due to COVID-19.
Orders rose 7% in the fourth quarter compared to the prior year, driven by 12% growth in EMEA and 6% growth in the Americas. The current year included strong growth in both project and day-to-day business in the Americas and EMEA and strength in January and February. Backlog at the end of the fourth quarter rose up 17 percent compared to the prior year.
Meanwhile, the company had sold its PolyVision subsidiary during the fourth quarter for net proceeds of $72.6 million, which has led to the profit on sale of $21 million which reduced operating expenses in the Other category. The company realized a net tax benefit on the sale which reduced income tax expense by $8.7 million. Variable compensation expense related to the transaction were of aggregate $13.4 million and was spread across the various business segments in cost of sales and operating expenses. The company has posted the operating income of $69.0 million (or 7.3 percent of revenue) for the fourth quarter, which reflects an increase of 46.8% compared to operating income of $47 million (or 5.2 percent of revenue) in the prior year, including a net benefit from the sale of PolyVision of $7.6 million.
Additionally, the company has declared a quarterly cash dividend of $0.07 per share, to be paid on or before April 17, 2020.