Leggett & Platt Trims Sales Forecast

June 19, 2007  by in UnCategorized   

By Home Furnishings Business in Bedding on June 2007 Leggett & Platt said Monday that several of its markets have “weakened considerably” over the past eight weeks, and, as a result, it trimmed its second-quarter earnings estimates. The company now expects second-quarter earnings to be in the range of 31 cents to 36 cents, which is 11 cents lower than it forecast in April.

The Carthage, Mo.-based company, which makes mattress springs, beds and industrial components, said quarterly sales are now expected to be about $75 million lower than previously thought. It predicts quarterly sales will decline 4 percent to about $1.3 billion. For the year, it expects earnings of $1.35 to $1.55 per share, a decline of 25 cents from its earlier forecast.

Leggett & Platt sold off its Prime Foam division in April, and on Monday company officials said “management is intently examining a few remaining underperforming operations, and may close those facilities.”

CEO David Haffner said the company does not see a major catalyst that’s likely to spur demand in the second half of the year.

“We understand that investors’ patience is running thin, and we are equally dissatisfied,” he said. “Status quo is clearly not acceptable. As part of the ongoing strategic review of our business portfolio that commenced earlier this year, we are critically analyzing likely changes to individual business models and to the portfolio itself.”