Leggett & Platt Reports Fourth Qtr & Full Year '24 Results

February 16, 2025  by Karen Parrish in Business Strategy, Industry   

President and CEO Karl Glassman commented, "In 2024, we made excellent progress on our strategic priorities, particularly the execution of our restructuring plan, which consistently met or exceeded our expectations. As part of our restructuring activities this year, we realized $22 million in EBIT benefit, generated $20 million in cash proceeds from real estate sales, minimized sales attrition, and kept costs on target."

"We prioritized balance sheet strength and reduced debt by $126 million. Additionally, we initiated a portfolio evaluation to assess opportunities for long-term growth and determine which businesses are the right long-term fit, through which we continue to explore a potential sale of our Aerospace Group."

"Our 2024 sales and earnings were impacted by continued weak demand in residential end markets and softening in Automotive and Hydraulic Cylinders in the second half of the year. However, we are encouraged that our strategic initiatives are delivering results."

"We expect continued economic uncertainty in 2025, but we continue to focus on strengthening our balance sheet, improving operational efficiency and margins, and positioning the company for long-term growth. I am confident that the actions we are taking will improve profitability and create long-term shareholder value."

"As we continue driving improvements in 2025, I am pleased to announce that Sam Smith has been promoted to President of the Specialized Products segment. Sam has been instrumental in steering operational efficiency projects in the segment since mid-2024 and is already well-versed in each of these businesses."

"In addition to leading Specialized Products, Sam will continue to serve as Executive Vice President and President of the Furniture, Flooring & Textile Products segment."

FOURTH QUARTER RESULTS

Fourth quarter sales were $1.1 billion, a 5% decrease versus fourth quarter last year

— Organic sales² were down 5%

— Volume was down 4%, primarily from continued weak demand in residential end markets, the expected exit of a customer in Specialty Foam, and soft demand in Automotive and Hydraulic Cylinders. These declines were partially offset by higher trade rod and wire sales, strong demand in Aerospace, and growth in Textiles.

— Raw material-related selling price decreases and currency impact reduced sales 1%

Fourth quarter EBIT was $44 million, up $411 million from fourth quarter 2023 EBIT of ($367) million. Adjusted¹ EBIT was $56 million, a $10 million decrease from fourth quarter 2023 adjusted¹ EBIT.

— 4Q 2024 adjustments include: $15 million of restructuring charges, a $1 million non-cash goodwill impairment charge related to restructuring activities, and $4 million gain from the sale of real estate

— 4Q 2023 adjustments include: a $444 million non-cash long-lived asset impairment charge (primarily customer intangibles) related to prior year acquisitions in the Bedding Products segment, $6 million gain from the sale of real estate, and $5 million gain on net insurance proceeds from tornado damage

— Adjusted¹ EBIT decreased primarily from metal margin compression, lower volume, and other smaller items partially offset by lower amortization expense, restructuring benefit, and operational efficiency improvements.

EBIT margin was 4.1%, up from (32.9%) in the fourth quarter of 2023, and adjusted¹ EBIT margin was 5.3%, down from 5.9%.

Fourth quarter EPS was $.10, a $2.28 increase versus fourth quarter 2023 EPS of ($2.18). Fourth quarter adjusted¹ EPS was $.21, down $.05 versus fourth quarter 2023 adjusted¹ EPS of $.26.

FULL YEAR RESULTS

2024 sales were $4.4 billion, a 7% decrease versus 2023

— Organic sales² were down 7%

— Volume was down 4%, primarily from continued weak demand in residential end markets, the expected exit of a customer in Specialty Foam, and demand softening in the second half of the year in Automotive and Hydraulic Cylinders. These declines were partially offset by higher trade rod sales and strong demand in Aerospace.

— Raw material-related selling price decreases reduced sales 3%

2024 EBIT was a loss of $430 million, down $340 million from 2023 EBIT of ($90) million. Adjusted¹ EBIT was $267 million, a $67 million decrease from 2023 adjusted¹ EBIT.

— 2024 adjustments include: $676 million of non-cash goodwill impairment charges, $50 million of restructuring charges, $4 million of CEO transition compensation costs, $31 million gain from sale of real estate, and $2 million gain on net insurance proceeds from tornado damage.

— 2023 adjustments include: a $444 million long-lived asset impairment, $11 million gain from sale of real estate, and $9 million gain on net insurance proceeds from tornado damage.

— Adjusted¹ EBIT decreased primarily from lower volume and unfavorable sales mix, raw material-related pricing adjustments, metal margin compression, and other expected higher expense items such as bad debt, medical, etc., partially offset by lower amortization expense, operational efficiency improvements, and restructuring benefit.

EBIT margin was (9.8%), down from (1.9%) in 2023, and adjusted¹ EBIT margin was 6.1%, down from 7.1%.

2024 EPS was a loss of $3.73, a $2.73 decrease versus 2023 EPS of ($1.00). 2024 adjusted¹ EPS was $1.05, down $.34 versus 2023 adjusted¹ EPS of $1.39.