Leggett & Platt earnings decline 28.7% in 2Q
By Larry Thomas -- Furniture Today, July 29, 2007
Carthage, Mo. — Components supplier Leggett & Platt said second-quarter sales were 2.9% below last year's second quarter amid continuing weakness in nearly all the markets it serves.
Net income was down 28.7% from the comparable period last year, and the company cut its 2007 earnings guidance for the second time in as many months.
"Several of our markets weakened considerably during the quarter, resulting in a broad-based revenue decline," said David Haffner, president and CEO. "Given the limited visibility inherent in our markets, we are not forecasting a robust second half of the year. We have yet to see any significant catalyst that will appreciably increase demand."
Worldwide sales for the quarter ended June 30 totaled $1.32 billion, down from $1.36 billion in the same period last year.
Net income was $60 million or 33 cents per share, compared with $84.2 million or 45 cents per share in last year's second quarter.
Sales from continuing operations in the company's largest business segment, residential furnishings, fell 5.2% to $606.9 million. Within that segment, the company said its U.S. innerspring sales were down 5% from last year's second quarter, but its international innerspring sales were up 14% and furniture components sales were essentially flat.
The sharpest declines in the segment were in Leggett's carpet underlay and fiber businesses, each of which were down 18% from the comparable period last year.
For the first six months of 2007, total sales were $2.61 billion, a 2.6% decline from the first half of last year. First-half net income was off 7.2% to $135.7 million or 74 cents per share.
The company is now projecting 2007 earnings of $1.26 to $1.42 per share. That's down from projections of $1.28 to $1.48 per share issued only last month. And those projections were below guidance of $1.35 to $1.55 per share made early this year.
During a conference call with securities analysts, Haffner said the strategic review of the company's business portfolio that began last year has been significantly expanded since Leggett hired a national consulting firm in February.
He said the current review is broader and more long-term oriented than the earlier project. Initial results should be announced before the end of the year, he told the analysts.
| 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 6/30 | 2007 | 2006 | Change |
| (a) Includes earnings from discontinued operations of $3.2 million in the 2006 quarter, $13.1 million in the 2007 six months and $8.5 million in the 2006 six months. |
|||
| Sales | $1,316,100,000 | $1,355,600,000 | (2.9%) |
| Operating income | 100,800,000 | 125,500,000 | (19.7%) |
| Net income (a) | 60,000,000 | 84,200,000 | (28.7%) |
| Earnings per share | 0.33 | 0.45 | (26.7%) |
| 6 months ended 6/30 | 2007 | 2006 | Change |
| Sales | $2,610,400,000 | $2,679,400,000 | (2.6%) |
| Operating income | 207,700,000 | 233,400,000 | (11.0%) |
| Net income (a) | 135,700,000 | 146,300,000 | (7.2%) |
| Earnings per share | 0.74 | 0.78 | (5.1%) |
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L&P sales down 2.9%, earnings down 28.7%
Jul 20, 2007 -
Leggett’s 2Q earnings slide 22.8% on flat sales
Jul 27, 2008 -
L&P 1Q sales slip, but profit climbs 21.9%
May 6, 2007 -
L&P 3Q sales dip 3.1%
Oct 21, 2007
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