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Leggett & Platt sales rise 9.7% in first quarter

But higher raw materials costs hold earnings flat

Larry Thomas -- Furniture Today, April 29, 2011

CARTHAGE, Mo. — Leggett & Platt, the largest producer of furniture and bedding components, said first-quarter profits were essentially even with last year's first quarter on a 9.7% increase in sales.

The company said it had higher unit volumes during the quarter ended March 31, but that was offset by higher raw materials costs.

"We are very encouraged to see higher market demand and sales growth during the first quarter," said David Haffner, president and CEO. "That growth enhanced earnings, but was offset by higher raw material costs, as previously anticipated."

Haffner said the company implemented price increases during the quarter in response to cost increases, which should improve margins in subsequent quarters.

Net income totaled $45 million or 30 cents per share. In last year's first quarter, the profit was $45.1 million or 29 cents per share.

First-quarter sales were $895.8 million, up from $816.4 million in the same quarter last year.

Sales in the residential furnishings segment were $459.8 million, an increase of 5.8% from the first quarter of 2010.

The company also hiked its stock dividend by 1 cent per share to 27 cents - the 40th consecutive annual dividend increase - and increased its sales and earnings projections for 2011.

The new forecast calls for sales of $3.5 billion to $3.8 billion, up from a February projection of $3.4 billion to $3.6 billion. Earnings are now projected to be $1.25 to $1.50 per share. That's up from a February projection of $1.20 to $1.40 per share.

In 2010, sales were $3.36 billion and earnings were $1.15 per share.

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L&P Sales Up 9.7%, Earnings Flat in 1Q

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