The decline in the Other category was primarily due to higher inflation, net of pricing benefits, and unfavorable currency impacts. The decline in EMEA was primarily due to freight and labor inefficiencies, unfavorable currency impacts and the impact of lower volume. The improvement in the Americas was primarily due to higher pricing benefits, net of inflation, and higher volume, partially offset by higher fixed overhead costs and labor inefficiencies. Year-over-year pricing benefits of approximately $85 million exceeded year-over-year inflation by approximately $55 million. Gross margin of 28.8 percent in the third quarter represented an increase of 120 basis points compared to the prior year, and reflected a 280 basis point improvement in the Americas, a 240 basis point decline in EMEA and a 230 basis point decline in the Other category. The increase in adjusted operating income was primarily driven by higher pricing benefits, net of inflation, partially offset by higher operating expenses. Adjusted operating income of $37.7 million in the third quarter (which excludes $10.6 million of restructuring costs and $6.6 million of amortization of purchased intangible assets) represented an increase of $18.2 million compared to the prior year. Operating income of $20.5 million in the third quarter represented an increase of $4.6 million compared to the prior year. Operating income (loss) and adjusted operating income (loss) were as follows: "I'm proud of how our teams maintained their focus on implementing price increases in response to significant inflation, mitigating the impact of supply chain disruptions and controlling our level of spending." "We delivered revenue and earnings growth this quarter that met our expectations in a challenging environment," said Sara Armbruster, president and CEO. The order decline in the Other category was additionally impacted by COVID-related restrictions in China and reflected an overall decline in Asia Pacific compared to growth of more than 100 percent in the prior year. Orders were impacted by softening industry demand patterns believed to be driven by reduced sentiment related to growing macroeconomic and geopolitical concerns. Orders declined across all segments, with a decline in volume partially offset by pricing benefits. The organic revenue growth in all segments was driven by a strong beginning backlog and included significant pricing benefits. Revenue and order growth (decline) compared to the prior year were as follows: In the prior year, Steelcase reported revenue of $738.2 million and net income of $9.6 million, or $0.08 per share, and had adjusted earnings per share of $0.11. (NYSE: SCS) today reported third quarter revenue of $826.9 million, net income of $11.4 million, or $0.10 per share, and adjusted earnings per share of $0.20. 19, 2022 (GLOBE NEWSWIRE) - Steelcase Inc.
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