Daily News
From Home Furnishing Business
Raw Materials Costs Crimp Leggett & Platt Profits
July 28,
2017 by Larry Thomas in Economic News, Industry 
Leggett & Platt (NYSE: LEG), a major supplier of furniture and bedding components and finished furniture, said second-quarter sales rose 3.2% to $989.3 million, but profits tumbled nearly 28% due to higher raw materials costs.
The company said top-line strength was especially evident in its automotive and adjustable bed businesses, and said same-location sales grew 4%.
Net income for the quarter totaled $87.6 million or 64 cents per share. That was down from $121.2 million or 87 cents per share in last year’s second quarter, a period that included earnings of 15 cents per share from discontinued operations.
"The growth we experienced in the first quarter continued into the second, with organic sales growing 4% during 2Q from both volume gains and inflation,” said Karl Glassman, president and CEO. “This is a welcome change after two years of reported quarterly sales declines in 2015 and 2016.”
The company’s residential products segment, which includes bedding components, fabric converting and carpet cushioning, had sales of $412 million, essentially even with last year’s second quarter.
The furniture products segment, which includes furniture components, adjustable beds and finished furniture, saw its sales rise 7.4% to $271.6 million.
For the first six months of 2017, companywide sales rose 2.8% to $1.95 billion. Six-month net income was $173.7 million or $1.26 per share. That was down from $210.7 million or $1.50 per share in the first half of 2016.
Leggett & Platt also tweaked its sales and earnings guidance for year. The company shaved $50 million from its April sales projection, issuing a new sales forecast of $3.9 billion to $4 billion. It also narrowed the range of its projected earnings per share to $2.55 to $2.65. The April forecast was $2.55 to $2.75.