Leggett & Platt posts 2001 sales drop of 3.8%
By Furniture Today Staff -- Furniture Today, February 3, 2002
CARTHAGE, Mo. — For just the second time in its 34 years as a public company, components giant Leggett & Platt has reported an annual sales decline.
The nation's largest supplier of furniture and bedding components said sales dropped 3.8% to $4.1 billion in 2001. Same-location sales, which exclude figures from recent acquisitions, were off 9.3%.
"This was a very challenging year. It was the largest one-year sales decline we've ever experienced," said Felix Wright, president and chief executive officer.
In a conference call with securities analysts, he said the decline was spread across all segments, but noted the commercial furnishings and aluminum businesses were especially hard hit. Its residential furnishings segment, which includes furniture and bedding components, saw total sales fall a modest 0.8% and same-location sales fall 2.7% for the year.
"We believe a recovery is beginning in some segments, but it could be slow to arrive in others," Wright said.
Net income for the year was $187.6 million, a drop of 29% from the $264.1 million recorded in 2000. Part of the decline was due to one-time costs of about $18 million related to restructuring and plant closings.
Noting the company recorded its 14th straight year of record cash flow, Wright said the balance sheet remains strong. "The future of Leggett looks very bright," he said. "We feel very well situated to take advantage of improved business conditions."
Karl Glassman, president of Leggett's residential furnishings segment, told analysts that furniture and bedding components sales appear to have hit bottom in last year's second quarter. "There is cause for optimism in this segment. December was significantly stronger than October and November," he said, adding motion upholstery has been especially strong in recent weeks, while bedding "is starting to accelerate."
| • Leggett & Platt | |||
|---|---|---|---|
| Owns Fashion Bed Group (Berkshire, Dresher and J/B Ross), Harris-Hub, Duro-Metal, Bedline and L&P Consumer Products Division | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 12/31 | 2001 | 2000 | Change |
| Sales | $968,500,000 | $1,007,500,000 | (3.9%) |
| Operating income | 86,900,000 | 98,800,000 | (12.0%) |
| Net income(a) | 35,400,000 | 45,100,000 | (21.5%) |
| Earnings per share | 0.18 | 0.23 | (21.7%) |
| Year ended 12/31 | 2001 | 2000 | Change |
| Sales | $4,113,800,000 | $4,276,300,000 | (3.8%) |
| Operating income | 401,700,000 | 520,700,000 | (22.9%) |
| Net income(a) | 187,600,000 | 264,100,000 | (29.0%) |
| Earnings per share | 0.94 | 1.32 | (28.8%) |
| (a) Includes pretax charges for plant closings and restructuring of $12 million in the 2001 quarter, $6 million in the 2000 quarter, $18 million in the 2001 year and $9 million in the 2000 year. | |||
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