From staff reports
news@joplinglobe.com
CARTHAGE, Mo. — Year-end sales for Leggett & Platt came to just more than $3 billion, down 25 percent from sales of just more than $4 billion one year earlier, but net revenue and earnings per share rose. Revenue for the fiscal year came to $118 million, or 70 cents per share, compared to $104.4 million, or 62 cents per share for fiscal year 2008.
Fourth-quarter sales came to $769.7 million, down nearly 13 percent from $882.5 million one year earlier. Earnings came to $35.2 million, or 23 cents per share, compared to a loss of $18 million, or 11 cents per share for the same quarter one year earlier.
Leggett & Platt officials noted in their release that the company generated $565 million in cash from operations during 2009, “the second-highest level ever, reflecting targeted efforts to optimize working capital. Major uses of cash included $240 million to fund dividends and capital requirements, $188 million (net) to purchase Leggett stock, and $64 million (net) to reduce debt.”
President and Chief Executive Officer David Haffner said in a statement: “Our significant cost reduction efforts and pricing discipline allowed us to sustain earnings per share and improve margins, despite the weak economy. … I am extremely pleased with our employees’ accomplishments in the face of such economic headwind.”
He also said the company continued to make progress toward goals first outlined in November 2007.
Leggett & Platt:
n Generated cash of more than $1.4 billion from both operations ($1 billion) and divestitures ($420 million).
n Increased quarterly dividends by 44 percent (from 18 cents to 26 cents per share).
n Bought back 15 percent (26 million shares) of Leggett’s outstanding stock.
n Reduced long-term net debt to its lowest level (in dollars) in over a decade.
n Achieved two-year Total Shareholder Return of 32 percent, “within the top 4 percent of all S&P; 500 companies.”
Haffner also said in the statement: “We are very well positioned to ride out the economic downturn, which we anticipate will continue throughout 2010. Whether the economy remains lackluster or unexpectedly strengthens, our main financial objective remains to consistently achieve Total Shareholder Return within the top third of the S&P; 500, a goal we have successfully achieved over the last two years.”
Outlook
Leggett & Platt officials said in a statement that they anticipate 2010 sales of approximately $2.9 to 3.3 billion, “reflecting the company’s belief that the economy will likely remain depressed.” The company also forecast that continuing operations should generate earnings per share in 2010 of 75 cents to $1.15.
