Leggett’s 2Q earnings slide 22.8% on flat sales
By Larry Thomas -- Furniture Today, July 27, 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.
| 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. | |||
| (a) Sales from continuing operations. (b) Includes net earnings from discontinued operations of $2.8 million in the 2008 quarter, $3.7 million in the 2007 quarter, $7 million in the 2008 six months and $23 million in the 2007 six months. (c) Based on average shares outstanding of 171.5 million in the 2008 quarter, 182.6 million in the 2007 quarter, 172.3 million in the 2008 six months and 183.2 million in the 2007 six months. | |||
| Quarter ended 6/30 | 2008 | 2007 | Change |
| Sales (a) | $1,063,100,000 | $1,070,500,000 | (0.7%) |
| Operating income | 88,800,000 | 93,600,000 | (5.1%) |
| Net income (b) | 46,300,000 | 60,000,000 | (22.8%) |
| Earnings per share (c) | 0.27 | 0.33 | (18.2%) |
| 6 months ended 6/30 | 2008 | 2007 | Change |
| Sales (a) | $2,061,400,000 | $2,118,100,000 | (2.7%) |
| Operating income | 162,000,000 | 189,700,000 | (14.6%) |
| Net income (b) | 89,700,000 | 135,700,000 | (33.9%) |
| Earnings per share (c) | 0.52 | 0.74 | (29.7%) |
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Leggett & Platt profits decline 22.8% in quarter
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