Leggett & Platt’s First Quarter Earnings Drop » BedTimes
Leggett & Platt said first-quarter sales fell 8% to $1.21 billion as demand remained weak in its upholstery, furniture, flooring and textiles businesses.
Weaker demand also affected the company’s bottom line, as net income for the three months ended March 31 fell 41 percent to $53.5 million, or 39 cents per share.
President and CEO Mitch Dolloff said the results were above expectations, however, because many of the expenses were lower than expected.
“Our diversified portfolio of businesses, strong financial position, and the ingenuity and agility of our people continue to help us navigate difficult markets,” said Dolloff. “We are focused on improving the things we can control and continuing to mitigate the macroeconomic effects on our business. Our financial discipline allows us to withstand periods of economic uncertainty and enables us to manage our company for long-term success.”
He said the company will continue to focus on improving operational efficiencies and working with customers on new product opportunities.
Sales in the Bed Products segment decreased 17 percent to $528.5 million, largely due to weak demand in the US mattress market and lower selling prices for raw materials. EBITDA in this segment declined by 56 percent to $33.3 million.
The company’s furniture, flooring and textile products segment recorded sales of $364.4 million, down 13 percent from the first quarter of last year. EBIT fell 34% to $28.3 million.
The Specialty Products segment, which includes the automotive, aerospace and hydraulics business, reported a 21% increase in sales to $320.7 million. Earnings before interest and taxes rose 41 percent to $28.7 million.
The company said its sales and profit estimates for 2023 were unchanged from guidance issued in February.
Sales are expected to range from $4.8 billion to $5.2 billion, representing a decrease of 7 percent to an increase of 1 percent compared to 2022. The projection assumes a low single-digit decline in sales of bedding, furniture, flooring, and textile products along with a significant increase In sales of the specialized products sector.
Earnings per share are expected to be $1.50 to $1.90. In 2022, the figure is $2.27 per share.