L&P sales up 9.6%, profits rise 15.9%
By Larry Thomas -- Furniture Today, May 1, 2005
Carthage, Mo. — Components kingpin and metal bed maker Leggett & Platt said first-quarter net income rose 15.9% on a sales increase of 9.6%.
The nation's largest supplier of furniture and bedding components said overall unit volume essentially was even with the 2004 first quarter, so the bulk of the sales gain resulted from inflation. Same-location sales were up 8%.
Chairman and CEO Felix Wright said, "We're off to a good start for the year. Sales growth came in at the upper end of our expectations."
Total sales for the quarter were $1.3 billion, up from $1.2 billion in last year's first quarter. Net income came to $72.8 million, or 37 cents per share, compared with $62.8 million, or 32 cents per share, a year earlier.
During a conference call with securities analysts, L&P executives said same-location sales from its residential furnishings segment, the company's largest business unit, rose 7% in spite of a slight decline in sales of bedding components. The decline was more than offset by gains from inflation and increased sales of furniture components, notably mechanisms for recliners and motion furniture.
The segment's earnings before interest and taxes dropped 20% to $55.7 million due to higher chemical costs that significantly affected foam operations, among other things.
Karl Glassman, executive vice president and president of the residential furnishings segment, told analysts the company noticed some softness in its mechanism business during March for the first time in about two years.
However, he said the economy continues to send "mixed signals," so it isn't clear if the softness will continue through the current quarter.
Bedding components experienced a decline "in the low single digits" in the first quarter, but Glassman said the decline was not as great as in the fourth quarter.
"Bedding is almost schizophrenic," he said. "There is real strength at the upper end ... but our strongest area is the low-end promotional. The non-branded volume players are having a field day right now."
Overall sales in residential furnishings, excluding sales to other L&P business segments, totaled $640.5 million, up from $596.3 million in last year's first quarter.
The next-largest segment, commercial fixtures and components, had sales of $264.7 million, up from $241 million a year earlier.
In the quarter, L&P acquired a producer of fabric used in road construction and other commercial settings that should add $12 million in annual sales. The company also sold a small fiber producer that generated annual revenue of about $15 million.
| 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 3/31 | 2005 | 2004 | Change |
| Sales | $1,301,300,000 | $1,187,200,000 | 9.6% |
| Operating income | 119,800,000 | 103,100,000 | 16.2% |
| Net income | 72,800,000 | 62,800,000 | 15.9% |
| Earnings per share | 0.37 | 0.32 | 15.6% |
-
L&P 1Q sales slip, but profit climbs 21.9%
May 6, 2007 -
L&P 4Q sales dip 2.2%; refund boosts income
Feb 18, 2007 -
Leggett’s 2Q earnings slide 22.8% on flat sales
Jul 27, 2008 -
Acquisitions boost L&P sales 5.9%
May 9, 2006 -
Leggett & Platt profits decline 22.8% in quarter
Jul 18, 2008
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