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Leggett & Platt expects fourth-quarter charge of $36 million

Charge is related to restructuring activities

Furniture Today Staff -- Furniture Today, December 29, 2011

CARTHAGE, Mo. — Components supplier Leggett & Platt said it expects to take a non-cash charge of $36 million in the fourth quarter for restructuring activity including the closing of some manufacturing facilities.

"Production capacity should decline only slightly, due to the relocation of equipment to other facilities," the company said.

Leggett said the charge is expected to reduce its earnings per share by 16 cents. Full year EPS is projected to be in the range of 99 cents to $1.04.

The restructuring moves, including some plant consolidations, are expected to benefit 2012 earnings per share by 7 to 10 cents, the company said.

"Two months ago we disclosed our belief that the U.S. economy will face headwinds for longer than we previously expected," said President and CEO David Haffner. "We also mentioned that we were turning our focus to actions that would yield improved ongoing profitability. That focus, and our view of continuing demand weakness in certain markets, led to the current restructuring activity and recognition of impairments. We have decided to close some production facilities, trim our cost structure, and reduce overhead. Importantly, full year underlying operational results appear to be in line with the expectations we shared in our October earnings release."

Fourth-quarter results will be released Feb. 6.

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Leggett & Platt expects $36M charge for closing some plants

Jan 18, 2012

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