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Leggett reports $212.6 million fourth quarter loss

One-time restructuring charges take toll

Larry Thomas -- Furniture Today, January 25, 2008

CARTHAGE, Mo. — Components supplier Leggett & Platt, which is in the midst of a massive restructuring, reported a fourth-quarter net loss of $212.6 million due largely to several one-time charges.

The company also said many of its domestic businesses suffered from weak demand, with sales from continuing operations rising a modest 1.3%.

The net loss for the quarter, which equals $1.21 per share, had been expected. It includes $143 million in goodwill impairment charges from Leggett’s fixture and display operations, and $132 million in asset impairment charges from businesses the company intends to sell.

In last year’s fourth quarter, the company had earnings of $70 million, or 38 cents per share.

Fourth-quarter sales from continuing operations were $1.054 billion, up from $1.04 billion in last year’s fourth quarter. Total sales, including discontinued operations, were $1.27 billion, compared with $1.31 billion in the same period last year.

“Several markets remain soft as we enter 2008, with no visible catalyst to appreciably alter demand in the next few quarters,” said David Haffner, president and CEO. “We are focused on creating long-term value by implementing our strategic plan.”

As part of a restructuring announced in November, Leggett intends to sell its entire aluminum products segment, as well as about a half-dozen business units from its residential furnishings, commercial fixturing and components, and specialized products segments.

For the full year, sales from continuing operations slipped 0.6% to $4.31 billion. The net loss for the year totaled $11.2 million or 6 cents per share.

The company is projecting sales from continuing operations in 2008 to be about $4.2 billion, or about 2% below 2007. Earnings from continuing operations are projected to be 95 cents per share to $1.30 per share, including restructuring costs of 5 cents to 10 cents per share.

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