Leggett & Platt sees sales, earnings dip in first quarter
Soft sales, higher costs play a role
By Furniture Today Staff -- Furniture Today, April 17, 2008
CARTHAGE, Mo. — Soft demand in residential markets and higher steel costs led to a 5% sales decline and a 42.7% earnings dip in the first quarter for components giant Leggett & Platt, the company reported.
The company said it has initiated price increases because of the higher costs, but said there’s a lag time before it can recover the added expense.
Sales amounted to $998.3 million in the first quarter and earnings were $43.4 million. That included $4.2 million in earnings from discontinued operations.
“We made good progress during the quarter on several fronts,” said David Haffner, president and CEO. “The divestitures we announced last fall are progressing well. We are in discussions with numerous potential buyers, both financial and strategic.”
He said the company expects the divestitures will be completed this year. Most of the assets for sale are unrelated to residential furniture operations.
Haffner said that as the divestitures are completed, the company intends to use “much of the proceeds” to repurchase shares.
In its residential furnishings division, Leggett reported that sales declined by $66 million or 11%, and earnings before interest and income taxes fell $19 million.
The company said it expects to post earnings of $1 to $1.30 per share this year from continuing operations, net of about 5 cents per share in restructuring-related costs. In 2007, the company reported a net loss of 6 cents per share after taking a big charge for a goodwill writeoff associated with its divestiture plan.
-
Leggett & Platt profits decline 22.8% in quarter
Jul 18, 2008 -
Leggett’s 2Q earnings slide 22.8% on flat sales
Jul 27, 2008
Merinos Home Furnishings opening display room, Boyles addition
HOM Furniture adds flooring to six Twin Cities stores
‘Mega vessels' likely to boost capacity, stabilize freight rates
Ernest Warsaw, founder of Sheffield Corp., dies at 91
21 companies from Turkey, Taiwan and China to exhibit at Showtime
Featured Company
-
FurnitureCore.com
FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more
VIEW ALL GALLERIES
