Revolution Work Transformation
From the Personal Harbor
  of Jim Hackett
The Road to Six Billion and Beyond
The Six Growth Strategies Illustrated
Information for Our Investors
Steelcase Offerings Around
  the World
Financial Highlights
MD&A
Consolidated Statements of Income
Consolidated Balance Sheets
Consolidated Statements of Changes
  in Shareholders' Equity
Consolidated Statements of Cash
  Flows
Notes to Consolidated Financial   Statements
 1. Nature of Operations
 2. Summary of Significant
Accounting Policies
 3. Comprehensive Income
 4. Initial Public Offering
 5. Inventories
 6. Property and Equipment, Net
 7. Notes Receivable and
Leased Assets
 8. Joint Ventures and Dealer
Transitions
 9. Other Assets
10. Short-Term Borrowings and
Long-Term Debt
11. Employee Benefit Plan
Obligations
12. Capital Structure
13. Stock Incentive Plans
14. Other Income, Net
15. Income Taxes
16. Financial, Instruments,
Concentrations of Credit Risk
and Off-Balance-Sheet Risk
17. Commitments
and Contingencies
18. Operating Segments
19. Acquisitions
20. Unaudited Quarterly Results
Report of Independent Certified
  Public Accountants and
  Management's Responsibility
  for Financial Reporting
Directors and Executive



ST E E L C A S E  I N C.
Notes to Consolidated Financial Statements

Note 20

UNAUDITED QUARTERLY RESULTS

The following sets forth summary unaudited information on a quarterly basis for the Company:

(in millions, except per share amounts)

2000
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Total

Net Sales
$ 691.8
$ 831.9
$ 881.0
$ 911.4
$ 3,316.1

Gross profit
253.4
281.6
294.3
273.4
1,102.7

Operating income
82.7
66.7
78.3
44.1
271.8

Net income
56.7
38.2
45.3
44.0
184.2

Earnings per share (basic and diluted)
0.37
0.25
0.30
0.29
1.21

1999
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Total

Net Sales
$ 672.3
$ 704.0
$ 687.6
$ 678.6
$ 2,742.5

Gross profit
253.2
265.2
240.7
230.3
989.4

Operating income
78.3
91.8
76.8
70.3
317.2

Net income
54.0
62.7
57.4
47.3
221.4

Earnings per share (basic and diluted)
0.35
0.41
0.37
0.31
1.44

Effective March 31, 1999, Steelcase Inc. acquired the remaining 50% equity interest in Steelcase Strafor. Accordingly, the results of operations of Steelcase Strafor, which is accounted for on a two month lag, from April 1, 1999 through December 31, 1999 have been consolidated with the Company’s results of operations. See Note 19.

During the fourth quarter of 2000, the Company recorded a one-time charge of $24.5 million ($15.0 million net of tax) to cost of sales for expenses related to the field retrofit of beltways and insulation materials within installed Pathways products.

Additionally, the Company sold certain non-operating assets and had investment gains resulting in one-time non-operating gains of $15.2 million ($9.3 million after tax).

During the third quarter of 1999, the Company benefited from the successful resolution of income tax litigation, which contributed to a reduction in the overall effective income tax rate expected for 1999 and resulted in interest income, resulting in an increase in net income of $6.2 million.