Leggett & Platt earnings up 38.1% in 4Q
By Furniture Today Staff -- Furniture Today, February 3, 2003
Carthage, Mo. — Components giant Leggett & Platt said earnings rose 38.1% in the fourth quarter and 24.3% for the year as sales increased 4.6% in the quarter and 3.8% for the year.
Excluding acquired businesses, sales grew 3.2% in the quarter and 0.7% for the year.
In the residential furnishings segment, total sales were up 3.6% to $519.8 million in the fourth quarter and up 4.1% to $2.16 billion for the year. Same-location sales were up 2.4% in the quarter and 2.8% in the year.
Earnings before interest and taxes in the segment jumped 23% in the quarter to $50.3 million, and 26% for the year to $225.8 million.
"In our markets, aggregate annual demand remained unchanged from 2001, and at levels roughly 10% lower than in 1999 and 2000," said Felix Wright, chairman and chief executive officer.
Part of the company's earnings gain resulted from a mandated change in accounting rules on goodwill amortization, but efforts to increase market share, reduce costs and improve efficiency also paid off, he said. Also helping was the fact that L&P had $3 million in pretax restructuring expenses in the 2002 fourth quarter, down from $12 million a year earlier.
Fourth-quarter earnings were at the high end of guidance the company gave Oct. 16. For 2003, sales growth, excluding acquisitions, should be between zero and 5%.
| 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 | |||
| Quarter ended 12/31 | 2002 | 2001 | Change |
| Sales | $1,012,600,000 | $968,500,000 | 4.6% |
| Operating income | 87,500,000 | 86,900,000 | 0.7% |
| Net income | 48,900,000 | 35,400,000 | 38.1% |
| Earnings per share | 0.25 | 0.18 | 38.9% |
| Year ended 12/31 | 2002 | 2001 | Change |
| Sales | $4,271,800,000 | $4,113,800,000 | 3.8% |
| Operating income | 427,500,000 | 401,700,000 | 6.4% |
| Net income | 233,100,000 | 187,600,000 | 24.3% |
| Earnings per share | 1.17 | 0.94 | 24.5% |
