Leggett & Platt first-quarter sales fall 28.1%
Earnings down 78%, in line with expectations
Larry Thomas -- Furniture Today, April 23, 2009
CARTHAGE, Mo. — Furniture and bedding components producer Leggett & Platt said first-quarter sales fell 28.1% and profits fell 78% amid continued weak demand in all of the markets its serves.
The company said the earnings were in line with expectations, but demand was weaker than expected.
"For many of our businesses, demand seems to have stabilized during the first quarter, albeit at levels below what we anticipated," said David Haffner, president and CEO.
Sales from continuing operations totaled $718.1 million for the quarter ended March 31. That's down from $998.3 million in the first quarter of 2008.
Sales in its residential furnishings segment, which includes furniture and bedding components, were down 21%.
Net income from continuing operations was $8.9 million or 6 cents per share in the most recent quarter. That compares with $40.4 million or 23 cents per share in the first quarter of 2008.
Haffner said Leggett & Platt's balance sheet remains strong, and he believes the company is well positioned to weather the recession, even if it lasts for an extended period. He noted the company has nearly $600 million available under its existing commercial paper program and revolving credit line, has no significant long-term debt maturing until 2012, and has a net debt-to-capital ratio of only 27.1%.
The company has lowered its sales and earnings forecasts for the year. It is now projecting earnings of 60 cents to 90 cents per share, down from a February projection of 60 cents to $1 per share.
The new sales forecast is $2.9 billion to $3 billion. That's down from the February projection of $3.2 billion to $3.6 billion.
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Leggett & Platt sales rise 9.7% in first quarter
Apr 29, 2011 -
L&P Sales Up 9.7%, Earnings Flat in 1Q
May 27, 2011 -
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 -
Leggett & Platt post profit of $45.1 million
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