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L&P 2Q sales jump 21.4%

By Furniture Today Staff -- Furniture Today, July 25, 2004

Carthage, Mo. — Components giant and metal bed resource Leggett & Platt set another quarterly record as sales in the second quarter jumped 21.4% to $1.3 billion from $1.1 billion in the comparable 2003 quarter.

Leggett said same-location sales increased 14%, with about half attributable to unit volume gains and half to inflation, primarily due to higher steel costs.

Quarterly net income skyrocketed 64.5% to $76.8 million, compared with $46.7 million a year ago. Leggett said higher sales, previous consolidation and cost reduction efforts and recent acquisitions contributed to the earnings increase.

For the first six months, Leggett recorded sales of $2.5 billion, up 17.9% over 2003 first-half sales of $2.1 billion. Profits for the period were $139.6 million, up 45.3% from $96.1 million a year ago.

In the residential furnishings segment, total sales in the latest quarter increased $91 million, or 17.2%. Same-location sales were up 13.3% and were augmented by acquisitions. Leggett said global innerspring unit sales were up slightly and unit sales of mechanisms for upholstered furniture increased significantly.

Chairman and CEO Felix Wright said, "During the quarter we achieved strong sales increases in all five segments, each benefiting from a combination of unit growth, inflation and/or acquisitions.

"Inflation also contributed to our revenue growth. Second-quarter market prices for steel (scrap, rod and rolled steel) were roughly 60% to 100% above year-ago levels, markedly increasing our raw material costs. Due to the magnitude of these increases, we continue to implement higher prices on our products."

Looking ahead, Leggett expects full-year earnings per share in the range of $1.35 to $1.45, raising the lower end of its previously announced range by five cents. For the year, same-location sales are expected to increase 8% to 11% versus 2003.

Acquisitions are anticipated to contribute $150 million to $200 million of incremental revenue, resulting in full-year trade sales of $4.8 billion to $5.1 billion.

For the third quarter, the company expects earnings of 38 cents to 43 cents per share, with same-location sales up about 10% compared with 2003 third-quarter results.

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 6/30	2004	2003	Change
Sales	$1,278,100,000	$1,052,700,000	21.4%
Operating income	127,600,000	84,200,000	51.5%
Net income	76,800,000	46,700,000	64.5%
Earnings per share	0.39	0.24	62.5%
6 months ended 6/30	2004	2003	Change
Sales	$2,465,300,000	$2,090,300,000	17.9%
Operating income	230,700,000	168,300,000	37.1%
Net income	139,600,000	96,100,000	45.3%
Earnings per share	0.71	0.49	44.9%

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Leggett & Platt 2Q sales up 21.4%

Jul 23, 2004

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