Steelcase Inc.(NYSE: SCS) stock crashed 10.3% on June 21st post lower than expected first quarter of FY 19 performance. The group has reported the adjusted earnings per share of 14 cents, and adjusted revenue growth of 3 percent to $754 million in the first quarter of FY 19. But, in the first quarter of FY 19, the Americas reported flat revenue growth, or an organic decline of 1 percent, compared to the prior year which included approximately $20 million of revenue related to a very large project.
EMEA posted revenue growth of 21 percent, or 8 percent on an organic basis, due to the strong project growth in Iberia, the UK and Germany. The Other category posted a revenue decline of 7 percent, or 9 percent on an organic basis. In the first quarter 2019, the orders grew 5 percent compared to the prior year. Orders declined 6 percent in the Other category compared to a strong prior year.
Meanwhile, orders in the Americas grew 6 percent in the first quarter 2019, and has a backlog at the end of the quarter was approximately 14 percent higher than the prior year. EMEA orders grew 7 percent, and has a backlog at the end of the quarter was approximately 15 percent higher than the prior year. Orders in the Other category declined 6 percent compared to a strong prior year.
SCS expects to complete the acquisition of Smith System Manufacturing Company at the end of June and consolidating its results thereafter.
For the second quarter of 2019, SCS expects revenue to be in the range of $865 to $890 million, which includes revenue from the anticipated acquisition. Adjusted for an estimated $4 million of favorable currency translation effects, and the impact of acquisitions and divestitures, the projected revenue range translates to expected organic growth of 6 to 9 percent. For Q2 2019, SCS expects diluted earnings per share to be between $0.28 to $0.33.
Additionally, SCS has declared a quarterly cash dividend of $0.135 per share, to be paid on or before July 17, 2018, to shareholders of record as of July 2, 2018.