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Steelcase Inc. F1Q09 (Qtr End 05/30/08) Earnings Call Transcript

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2008-06-27 11:35:29.0

Tags: Steelcase Inc.

Question-and-Answer Session

Operator

(Operator instructions) Your first question comes from Matthew McCall – BB&T Capital Markets.

Matthew McCall – BB&T Capital Markets

Can you talk a little bit more about what you’re seeing from maybe some of the legacy markets that you’re more ingrained in Europe and you’re growing in some of these other markets, where is the growth coming from and maybe talk about some of the different leading indicators in some of those markets.

Jim Hackett

As I said, the growth in the quarter was pretty broad based, Germany, Middle East, Benelux, Africa and Latin America in the quarter. What we’ve talked about in the past is the way we think about our international business is in two buckets. One is Western Europe and the other is the rest of international, the emerging markets or so.

And we’ve talked about the fact that Western Europe is something more than half, certainly less than two thirds of our total international revenue. What the color I think you’re looking for is where did the growth come from in those two buckets. And without getting into specifics I would tell you that the growth dollars were split pretty close 50/50. So organic growth in dollars came a chunk from Western Europe and the other half or so came from the rest of international.

Matthew McCall – BB&T Capital Markets

And similarly, if you look, you commented on the order patterns but if we look out a little further and obviously you’ve got some comfort in the order patterns continuing this year, or at least I’m sorry through the quarter, can you talk about some of those other leading indicators, customer visits, [mock outs], bid activity, just things like that that can give us a better idea of what the year could hold for North America specifically.

Dave Sylvester

I would tell you that our ability to look into the crystal ball of North America is challenged and I think you hear that from our competitors as well. Visibility is limited right now. For the near term, we feel okay, we feel okay because so far through last week our orders versus prior year as I mentioned in North America were showing some modest growth.

We also talked about the fact that following a fourth quarter where customer visits dipped significantly versus the prior year, they actually are up this quarter versus last year. I wouldn’t take that to the bank and start to cash in a rebound.

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