Leggett & Platt to sell some businesses
Apparently will retain furnishings assets
Larry Thomas -- Furniture Today, November 14, 2007
CARTHAGE, Mo. — Components supplier Leggett & Platt will eliminate more than one-fifth of its business portfolio and focus on total shareholder return as part of a massive restructuring announced late Tuesday.
The specific business units to be sold were not named in Tuesday’s announcement, which made no mention of its largest business segment, residential furnishings.
The restructuring will feature the divestiture of its entire aluminum products segment, which has annual revenues of about $900 million, and the sale of six additional business units.
Plus, the company’s store fixtures unit will jettison about $100 million of its least profitable revenue and close four factories.
Once the restructuring is complete, Leggett’s annual sales will be reduced by about $1.2 billion. The company had sales of $5.5 billion in 2006, and that should fall to about $4.3 billion by 2010.
Leggett executives were scheduled to discuss the restructuring in more detail at presentation for analysts and investors this morning.
Instead of concentrating almost solely on sales growth, the company said its new objective is to achieve total shareholder return of 12% to 15% annually. (Total shareholder return consists of the percentage increase in the stock price plus dividends.)
To support the new objective, the company said it will hike its dividend to an annual rate of $1 per share –a 39% increase. The new dividend will be paid in January to shareholders of record Dec. 14.
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L&P shedding less-profitable units
Nov 18, 2007 -
Leggett & Platt sells aluminum unit
Jul 17, 2008
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