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Leggett earnings jump 55.6% in quarter

By Larry Thomas -- Furniture Today, October 20, 2006

Carthage, Mo. — Leggett & Platt, the nation's largest supplier of furniture and bedding components, said third-quarter sales rose 4.9% from the same period a year earlier and net income jumped 55.6%

The company said same-location sales edged up 1% in the quarter ended Sept. 30. The remainder of the increase was the result of acquisitions.

"The North American automotive and bedding markets continue to be weak, and have softened more than we previously anticipated," said David Haffner, president and CEO. "On the other hand, our residential hardware and foam businesses have continued to perform well."

Sales for the quarter came to $1.41 billion, compared with $1.35 billion in last year's third quarter. Net income was $84 million or 45 cents per share, compared with $54 million or 28 cents per share in the third quarter of 2005.

The residential furnishings segment, which includes furniture and bedding components, recorded sales of $715.3 million, an increase of 8.3% from last year's third quarter.

Haffner said a restructuring program begun in early 2005 is essentially complete. He said costs related to this effort have amounted to $78 million, including $20 million this year.

During the most recent quarter, he said the benefits of the restructuring began to materialize. He also said that gains on the sale of assets added $4 million to pre-tax income.

For the full year, he said total sales should increase 4% to 5%, although same-location sales will be up only about 1%.

The company had been projecting a 2% gain in same-location sales, but Haffner said weakness in the automotive and bedding markets are expected to drag down the growth figure.

For the first nine months of this year, sales rose 5.9% to $4.19 billion. Net income was $230.3 million or $1.23 per share. That compares with $206 million or $1.06 per share in the first nine months of 2005.

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 9/30	2006	2005	Change
(a) Based on average shares outstanding of 186.3 million in the 2006 quarter, 193.8 million in the 2005 quarter, 187.4 million in the 2006 nine months and 195.1 million in the 2005 nine months.
Sales	$1,414,600,000	$1,348,600,000	4.9%
Operating income	138,000,000	99,300,000	39.0%
Net income	84,000,000	54,000,000	55.6%
Earnings per share (a)	0.45	0.28	60.7%
9 months ended 9/30	2006	2005	Change
Sales	$4,194,900,000	$3,959,700,000	5.9%
Operating income	384,900,000	347,000,000	10.9%
Net income	230,300,000	206,000,000	11.8%
Earnings per share (a)	1.23	1.06	16.0%

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Leggett earnings jump 55.6% in 3Q

Oct 24, 2006

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