Daily News
From Home Furnishing Business
Leggett & Platt Q1 Profits Fall, but Sales Rise 2.3%
April 28,
2017 by Larry Thomas in Economic News, Industry 
Leggett & Platt (NYSE: LEG), a major supplier of furniture and bedding components, said first-quarter sales rose 2.3% to $960.3 million, but net income slipped nearly 4% due largely to higher raw material costs.
The company recorded net income of $86.1 million or 62 cents per share in the quarter ended March 31, down from $89.5 million or 63 cents per share in last year’s first quarter.
Same-location sales grew 4%, the company said.
“This is a welcome change after seven consecutive quarters of year-over-year organic sales decreases, which were primarily the result of deflation and currency impacts,” said Karl Glassman, president and CEO. “Volume increased 4% despite demand softness early in the quarter in several of our end markets.”
Sales from the company’s furniture products segment totaled $271.1 million, essentially even with the same quarter last year. The company said sales gains in its adjustable bed and work furniture businesses were offset by declines in its Fashion Bed and Home Furniture businesses.
Glassman said Leggett & Platt should have “meaningful sales growth” for the 2017 calendar year, along with record adjusted earnings per share. The year is expected to include less divestiture activity than previous years, and he said the company plans to implement some price increases to cover its higher raw material costs.
He said the company is reaffirming the 2017 sales and earnings projections issued earlier this year. Sales are projected at $3.95 billion to $4.05 billion, while earnings per share are expected to be $2.55 to $2.75. Top-line strength is expected from its automotive, bedding, adjustable bed, work furniture and geo components businesses.