Leggett & Platt Sales Decline 3 Percent

July 19, 2007  by in UnCategorized   

By Home Furnishings Business in Bedding on July 2007 Leggett & Platt, Carthage, Mo., reported that sales in its second quarter declined 3 percent to $1.32 billion, and earnings per diluted share fell 29 percent to 33 cents per share from the same period of 2006.

“As we mentioned a few weeks ago, several of our markets weakened considerably during the quarter, resulting in a broad-based revenue decline,” said CEO David S. Haffner. “Given the limited visibility inherent in our markets, we are not forecasting a robust second half of the year. We have yet to see any significant catalyst that will appreciably increase demand; accordingly, our full-year guidance reflects continued market weakness for the remainder of 2007.”

Despite lower expected revenues, the company’s announcement said Leggett & Platt continues to have a strong balance sheet and cash flow. Officials expect the company to generate $650 million in cash during 2007, including proceeds of the divestiture of its prime foam division in March.

The company reported last month that it is in the midst of a strategic review of its business portfolio. It has engaged a national strategy consulting firm to provide an independent, thorough assessment of Leggett & Platt’s business units.

Haffner said, “We anticipate a transformation for Leggett & Platt during 2008 as we implement fundamental changes in our businesses. We believe these changes will significantly increase total return to our shareholders. We will share additional information about these initiatives in the coming months.”