Flexsteel, Leggett & Platt lower earnings projections
Larry Thomas -- Furniture Today, March 24, 2003
High Point — Two more home furnishings companies, upholstery major Flexsteel and components kingpin Leggett & Platt, have lowered their earnings projections for the current quarter.
Both companies cited lower consumer confidence, rising energy prices and severe February weather as key reasons for the reduced estimates.
Flexsteel, which analysts had been projecting to earn 34 cents per share in the quarter ending March 31, now says the figure will be 18 to 23 cents per share.
"The continuing weak consumer confidence during February and the first half of March have combined with geopolitical issues and a general weakness in the economy to create a very difficult business environment," said Bruce Lauritsen, president and chief executive officer.
Leggett & Platt, meanwhile, said it expects to earn 22 to 26 cents per share this quarter, down from an earlier estimate of 27 to 32 cents per share.
During a conference call with analysts, company executives said its residential furniture and bedding components businesses were down in February and early March, with bedding slipping further than upholstery.
"Typically, bedding has led furniture out of an economic downturn ... but we haven't seen that this time," said Karl Glassman, executive vice president of operations.
Glassman said he believes the bedding industry's unit sales are down about 10% year-to-date.
"Our numbers aren't quite that tough but, frankly, it hasn't been a good situation," he said.
