Leggett & Platt to record $60-75 million charge
December 18, 2013,
CARTHAGE, Mo. — Components source Leggett & Platt said Tuesday it will take a pretax charge of $60 million to $75 million in the fourth quarter related to a non-furniture part of its business, its Commercial Vehicle Products group.
The non-cash impairment charge reflects the fact that the values of certain assets of the CVP unit, mainly goodwill, have fallen below book values, the company said.
Earnings per share will be reduced by 28 to 35 cents because of the charge, the company said.
Officials said the lower value of the CVP assets reflects reduced market demand for the racks, shelving and cabinets used in telecom, cable and delivery vans.