L&P 4Q sales up 12.7%, profits jump 20.7%
By Furniture Today Staff -- Furniture Today, February 1, 2004
CARTHAGE, Mo. — Components giant and metal bed resource Leggett & Platt reported record sales of $1.1 billion in the fourth quarter, up 12.7% from $1 billion in last year's final quarter.
Same-location sales increased 8.7%, the strongest growth since 1994.
Net income for the quarter jumped 20.7% to $59 million from $48.9 million a year ago. Leggett said higher sales generated significant earnings increases, but a weaker dollar offset part of the gain.
For the year, sales were up 2.7% to $4.4 billion from $4.3 billion in 2002. The company said the gain came about equally from same-location growth and acquisitions.
Profits for the year were $205.9 million, down 11.7% from earnings of $233.1 million in the previous year. Annual earnings per share were $1.05, measured against $1.17 a year ago. Earnings per share in 2003, which benefited from higher sales and lower restructuring costs, were reduced by about 25 cents per share due to sharply higher energy and steel costs, a weaker U.S. dollar and inventory write-downs.
During the year, Leggett added five manufacturing facilities in Asia, including an upholstered furniture mechanism plant.
In the residential furnishings segment, total sales increased by $53 million or 10.2% in the fourth quarter, compared with the final quarter of 2002. Leggett said earnings before interest and taxes, or EBIT, were up $8.5 million or 17%.
For the year, residential furnishings segment sales grew by 2.5% or $55 million, including a 1.4% same-location sales increase. EBIT decreased by $14 million or 6%. Sales-related income increases were offset by the impact of currency rates, higher steel and energy costs and unabsorbed overhead from lower production rates, primarily in U.S. spring operations during the year's first half.
Felix Wright, Leggett & Platt's chairman and CEO, said, "We are optimistic about 2004. Externally, the economy and our markets seem headed in the right direction. Consumer sentiment is improving, interest rates and inflation remain low and manufacturing activity is increasing."
For the first quarter of 2004, Leggett expects sales to be about 10% higher than the comparable 2003 quarter, which was roughly equivalent to fourth quarter 2003 sales. The company anticipates earnings per share will be in a range of 26 cents to 31 cents.
| 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 loses or declines. | |||
| Quarter ended 12/31 | 2003 | 2002 | Change |
| Sales | $1,141,200,000 | $1,012,600,000 | 12.7% |
| Operating income | 102,500,000 | 87,500,000 | 17.1% |
| Net income | 59,000,000 | 48,900,000 | 20.7% |
| Earnings per share | 0.30 | 0.25 | 20.0% |
| Year ended 12/31 | 2003 | 2002 | Change |
| Sales | $4,388,200,000 | $4,271,800,000 | 2.7% |
| Operating income | 361,800,000 | 427,500,000 | (15.4%) |
| Net income | 205,900,000 | 233,100,000 | (11.7%) |
| Earnings per share | 1.05 | 1.17 | (10.3%) |
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