From Home Furnishing Business
Leggett & Platt Cuts Outlook Amid Weak Furniture, Bedding Demand
Furniture and bedding components supplier Leggett & Platt (NYSE: LEG) has reduced its 2017 earnings projections, citing rising steel costs, changes in inventory accounting and weak consumer demand for furniture and bedding.
The company now says it expects adjusted earnings per share of $2.40 to $2.50. That's down from a July projection of $2.55 to $2.65, and the new estimate doesn't include a one-time gain of 4 cents per share from the sale of the last business unit in its Commercial Vehicle Products operation.
The company left in place its July sales projection of $3.9 billion to $4 billion for the year.
Separately, the company said it completed the sale of Masterack, the lone business remaining in its commercial vehicle products operation, on Aug. 4. The sale generated a $3 million pre-tax loss, but this was more than offset by an $8 million tax benefit due to the high tax basis.
Masterack is a manufacturer of steel, aluminum and composite van racking, storage systems, and shelving for commercial work trucks.