Acquisitions boost L&P sales 5.9%
By Furniture Today Staff -- Furniture Today, April 25, 2006
Carthage, Mo. — Leggett & Platt reported first-quarter sales of $1.4 billion, a 5.9% increase over the first quarter of 2005.
The company, the largest supplier of furniture and bedding components, said acquisitions were the main driver of the sales increase, while sales from existing locations declined slightly due to restructuring.
First-quarter net income dropped 14.7% to $62.1 million or 33 cents per share.
Chairman Felix Wright said that in spite of the decline in earnings, he was pleased with the quarterly results, noting that cash flow from operations jumped 63% from a year ago.
"We are completing our restructuring more quickly that expected," he said during a conference call with securities analysts. "We are eliminating a number of chronically underperforming locations."
Wright said the company should begin seeing the financial benefits of restructuring in the second half of the year, and that the effort eventually will add 10 cents to 12 cents per share in earnings.
The restructuring, which began in mid-2005, will result in about $300 million in production volume shifting to more efficient plants.
The company said external sales from its residential furnishings segment, which includes bedding and furniture components, rose 8.2% to $693.3 million in the quarter. Unit sales of upholstered furniture components were up, but bedding units were down, said David Haffner, president and chief operating officer.
The only segment with a larger percentage sales increase was specialized products, which reported a 17.8% jump in external sales. The commercial fixtures segment had a 1.2% increase, while aluminum products were up 5.1%, and industrial materials were down 8.7%.
| 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, and all figures in parentheses are losses or declines. | |||
| Quarter ended 3/31 | 2006 | 2005 | Change |
| (a) Based on average shares outstanding of 188.2 million in the 2006 quarter and 196.5 million in the 2005 quarter. | |||
| Sales | $1,377,700,000 | $1,301,300,000 | 5.9% |
| Operating income | 116,300,000 | 119,800,000 | (2.9%) |
| Net income | 62,100,000 | 72,800,000 | (14.7%) |
| Earnings per share (a) | 0.33 | 0.37 | (10.8%) |
-
L&P 4Q sales dip 2.2%; refund boosts income
Feb 18, 2007 -
L&P 1Q sales slip, but profit climbs 21.9%
May 6, 2007 -
Leggett’s 2Q earnings slide 22.8% on flat sales
Jul 27, 2008 -
L&P sales up 9.6%, profits rise 15.9%
May 15, 2005 -
Leggett earnings jump 55.6% in quarter
Nov 5, 2006
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