Leggett & Platt Improves Revenue in 2nd Quarter » BedTimes Journal

Leggett & Platt stated second-quarter gross sales fell 6% to $1.06 billion, however the firm reversed a web loss from final 12 months’s second quarter and recorded a revenue of $52.5 million, or 38 cents per share. 

The figures included an 11% drop in gross sales within the bedding merchandise phase, the corporate’s largest enterprise unit. Gross sales in that phase totaled $391.4 million within the quarter, down from $438 million in the identical interval final 12 months. The corporate attributed the decline to softness within the U.S. and European bedding markets, retail merchandising adjustments that affected its adjustable mattress product line, and gross sales attrition from a restructuring plan that noticed Leggett & Platt shut a number of factories and promote some companies. 

The corporate stated the restructuring enabled the bedding phase to extend adjusted EBIT (earnings earlier than curiosity and taxes) by $12 million throughout the quarter. 

Gross sales in its furnishings, flooring and textile merchandise phase fell 2% to $362.5 million, whereas gross sales within the specialised merchandise phase dropped 5% to $304.1 million. The specialised merchandise phase consists of the aerospace merchandise group, which the corporate has agreed to promote to non-public fairness agency Tinicum Inc. for $285 million. 

“We’re happy to report one other quarter of profitability enchancment,” stated Karl Glassman, president and CEO. “We additional strengthened our stability sheet by decreasing debt and favorably amending our revolving credit score facility. We additionally stay on observe to finish the sale of our Aerospace enterprise this 12 months. 

“Within the face of ongoing macroeconomic headwinds and uncertainty surrounding international commerce coverage, we stay assured within the energy and resilience of our enterprise,” he added. 

Glassman stated the restructuring effort, which started greater than a 12 months in the past, added $13 million to EBIT within the second quarter, and will add $60 million to $70 million yearly as soon as it’s totally carried out. 

Firm-wide, the gross sales attrition ought to complete about $65 million yearly when the plan is accomplished, he defined. 

For the six months that ended June 30, complete gross sales had been $2.08 billion, down 7% from $2.23 billion within the first half of 2024.  

Six-month web earnings was $83.1 million, or 60 cents per share. That compares with a web lack of $570.6 million, or $4.16 per share in the identical interval final 12 months. 

The corporate reaffirmed an annual gross sales projection of $4 billion to $4.3 billion that was issued earlier this 12 months. The projection assumes Leggett & Platt will personal the aerospace enterprise for your complete 12 months. That unit had gross sales of $190 million in 2024. 

Earnings per share for this 12 months are actually anticipated to be 88 cents to $1.17. That compares with the earlier estimate of 85 cents to $1.26.  

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