Leggett & Platt posts loss for quarter, profit for year
Sales down 15.1% in fourth quarter
Larry Thomas -- Furniture Today, February 4, 2009
CARTHAGE, Mo. — Components supplier Leggett & Platt reported a fourth-quarter loss of $18 million, but earned a profit for the full year despite weak sales.
The company, which is the largest producer of furniture and bedding components, said demand was soft in all of its business units.
"The weakened economy resulted in dreadful market demand, with fourth quarter unit volumes down more than 20%," said David Haffner, president and CEO. "It appears that these demand levels could persist for some time."
Leggett said that in response to the slowdown, it cut its workforce at its continuing operations by 9%, or 2,000 jobs, in the fourth quarter as it closed some facilities and worked shorter shifts.
Sales for the quarter totaled $882.5 million, down 15.1% from $1.04 billion in sales in the fourth quarter of 2007.
The fourth quarter net loss, which equals 11 cents per share, was far less than the loss of $212.6 million or $1.21 per share reported in the same period in 2007. The 2007 period included losses of $95.2 million from several discontinued operations.
More than half the most recent quarter's loss - $9.8 million - also came from discontinued operations.
For all of 2008, sales slid 4.1% to $4.08 billion. Full-year earnings were $104.4 million or 62 cents per share. That was a reversal from 2007, when the company reported a net loss of $11.2 million or 6 cents per share.
Sales for Leggett & Platt's residential furnishings segment fell 13.9% to $459.5 million in the fourth quarter. For the full year, sales were off 6% to $2.12 billion.
Despite the economic turmoil, Haffner said the company's financial position remains strong, noting that the company generated $436 million in cash from operations and netted more than $400 million from the sale of five business units last year.
The company is forecasting 2009 earnings of 60 cents to $1 per share from continuing operations. Sales from continuing operations are projected at $3.2 billion to $3.6 billion, some 12% to 22% lower than 2008.
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Profit up, sales down for Leggett & Platt
Jan 29, 2010 -
Leggett & Platt profit up 3.8% as sales rise 8.1%
Jul 29, 2011 -
Leggett & Platt's first-quarter sales rise 5.6%
Apr 26, 2012 -
L&P sales rise 3.7%, but earnings fall 50%
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