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From an operating perspective though, the year
was filled with developments that will have a positive impact on our
company’s future.
You’ll find an in-depth analysis of fiscal year
2000 financial results in the Management’s Discussion and Analysis
section of this report. I would, however, like to highlight these
points:
• Our performance in North America was actually slightly better
than our industry’s. The Business and Institutional Furniture Manufacturers’
Association reported that sales declined one percent industry-wide.
• Impressive sales gains recorded by the European units that we acquired
in fiscal year 2000 were tempered by the decline in the value of the
euro relative to the U.S. dollar. Their sales rose six percent when
measured in their local currencies, but only one percent in dollar terms.
•
Our Design Partnership companies posted a 23 percent
sales gain, and sales of our Turnstone brand,
which serves smaller companies, more than doubled.
•
The asset base of Steelcase Financial Services
grew 52 percent as more customers chose leasing
to finance their purchases.
These
gains were offset primarily by the performances
of our core Steelcase branded products in North
America, due to pricing pressures and soft demand
from our larger customers.
Our
margins were impacted primarily by these developments:
•
Competitive pricing pressures that occur when
a market grows slowly.
•
The expenses involved in completing our acquisition
of Strafor.
•
A one-time $15 million after-tax charge to cover
retrofits at several of our Pathways customers’
facilities.
•
New product introduction and ramp-up costs.
•
Investments in creating build-to-order systems
– which will enable us to provide better service
and greater value to our customers.
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),
operating income would have totaled $296.3 million.