Leggett & Platt 1Q Sales up 14%

April 22, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on April 23, 2010

Leggett & Platt (NYSE: LEG) reported sales from continuing operations of $816.4 million for the first quarter, a 14 percent increased compared to $718.1 million during the same quarter last year.

Net earnings for the quarter were $46.9 million, compared to $3 million during the same period last year.

"We are encouraged to see market improvement and sales growth during the first quarter," said David Haffner, president and CEO. That growth, combined with last year's significant cost reduction efforts, led to meaningful earnings improvement. Gross margin remained over 20 percent, despite a noteworthy increase in steel costs during the first quarter."

Haffner said the company was well underway with its three-part strategic plan announced in November and has divested Leggett of low-performing businesses.

"We've also made substantial progress on the second step of the plan€”to improve margins and returns on the businesses we have kept--despite significant declines in market demand," he said. "Margins should continue to increase as the economy improves."

Haffner said the third part of the plan is to grow the company at 4 percent to 5 percent per year over the long term.

"For the next couple of years, gradual market recovery should provide ample growth, and we should benefit significantly from our advantaged competitive positions, improved cost structure, and spare production capacity," he said. "Longer term, we aim for growth to come from development and commercialization of innovative new products, and from identification of and expansion into potential new growth platforms."

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