Leggett & Platt profits decline 22.8% in quarter
But furnishings segment earnings improve 15%
Larry Thomas -- Furniture Today, July 18, 2008
CARTHAGE, Mo. — Furniture and bedding components supplier Leggett & Platt said its second quarter profits declined 22.8% because of continued soft demand in several of its markets.
Net sales from continuing operations slipped 0.7% to $1.06 billion.
The company attributed the bulk of the earnings decline to its commercial fixtures and components segment, which saw sales fall 16% and earnings before interest and taxes tumble 41%.
Its largest segment, residential furnishings, had a sales decline of 1.3%, but a 15% increase in earnings before interest and taxes.
David Haffner, president and CEO, said the company’s bedding components business was a particular bright spot in residential furnishings. He said the business gained market share as bedding manufacturers shifted to domestically produced innersprings.
In addition, he said specialty bedding lost market share to innerspring bedding because innerspring represents a better value for consumers.
Net income for the quarter ended June 30 totaled $46.3 million or 27 cents per share. That compares with $60 million or 33 cents per share in last year’s second quarter.
The most recent quarter included figures from the company’s aluminum segment, which was sold earlier this week in a deal worth about $350 million.
For the first half of the year, sales fell 2.7% to $2.06 billion. Net income fell 33.9% to $89.7 million or 52 cents per share.
The company reaffirmed earlier earnings projections of $1 to $1.30 per share for the full year. Sales are projected to be about $4.3 billion, or about 2% higher than 2007.
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