L&P earnings jump 66% despite sales drop of 28%
By Larry Thomas -- Furniture Today, November 2, 2009
CARTHAGE, Mo. — Components manufacturer Leggett & Platt said third-quarter profits jumped 66%, despite sales that were 28% below last year's third quarter.
The company attributed the earnings increase to cost reduction efforts, pricing discipline and an accounting change in the method of valuing inventories.
“Our balance sheet and cash flow remain strong. We now expect our 2009 operating cash flow to exceed $500 million,” said David Haffner, president and CEO. “On the other hand, weak demand continues across our businesses; though stable, markets show few signs of improvement.”
Sales for the quarter totaled $809.9 million, down from $1.13 billion in last year's third quarter.
Net income was $54.3 million or 34 cents per share. That's up from $32.7 million or 20 cents per share in the comparable period in 2009.
Leggett's residential furniture segment had third-quarter sales of $441.1 million, down 23.4% from $575.8 million in last year's third quarter.
For the first nine months of 2009, companywide sales were off 28.4% to $2.29 billion.
Nine-month earnings were $76.6 million or 48 cents per share. That was down from $122.4 million or 72 cents per share in the first nine months of 2008.
The company affirmed its previous sales estimate of $3 billion for 2009, but boosted its earnings forecast to 65 cents to 75 cents per share from continuing operations. The previous forecast was 55 cents to 70 cents per share.
