Steelcase Inc (NYSE: SCS) stock rose 11.02% (As on December 20, 12:39:22 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 24. Orders (adjusted for the impact of divestitures and currency translation effects) grew 15 percent in the third quarter compared to the prior year. Orders grew 16 percent in the Americas and 10 percent in International. The order growth in the Americas was primarily driven by large corporate customers in both continuing and project business. The order growth in International was primarily driven by Asia Pacific. On a consolidated basis, orders grew 1 percent sequentially versus the second quarter. Operating income of $43.8 million in the third quarter represented an increase of $23.3 million compared to the prior year, and adjusted operating income of $50.1 million in the third quarter represented an increase of $12.4 million compared to the prior year. The current year included a $9.5 million benefit from a decrease in the valuation of an acquisition earnout liability ($4.7 million was recorded in the Americas and $4.8 million was recorded in International) and $5.4 million of gains on the sale of land and other fixed assets in the Americas. Total liquidity, comprised of cash and cash equivalents and the cash surrender value of company-owned life insurance, aggregated to $424.6 million at the end of the third quarter, representing an increase of $110.1 million from the end of the second quarter. At the end of the third quarter, the company’s backlog of customer orders was approximately $699 million, which was 10 percent lower than the prior year.

SCS in the third quarter of FY 24 has reported the adjusted earnings per share of 30 cents, beating the analysts’ estimates for the adjusted earnings per share of 17 cents, according to the Zacks Consensus Estimate. The company had reported 6 percent decline in the adjusted revenue to $777.9 million in the third quarter of FY 24, missing the analysts’ estimates for revenue by 0.8%. This including 5 percent in the Americas and 7 percent in International. On an organic basis, revenue decreased 6 percent, including 4 percent in the Americas and 11 percent in International. The organic decline was driven by a lower backlog at the start of the third quarter. Gross margin of 32.4 percent in the third quarter represented an increase of 360 basis points compared to the prior year. The increase was driven by higher pricing benefits and operational improvements, partially offset by the impact of lower volume.