Leggett & Platt reports decline in sales, earnings

From staff reports

news@joplinglobe.com

CARTHAGE, Mo. — Leggett & Platt Inc. recently reported overall first-quarter earnings of 6 cents per share, compared with 25 cents per share in the same quarter one year ago.

Overall net earnings came to $8.6 million, compared with $44.6 million for the same period one year earlier.

First-quarter sales came to $718 million, 28 percent lower than the $998 million reported a year earlier.

The company, in a statement, said the sales drop-off was the result of “extremely weak market demand.”

David S. Haffner, president and chief executive officer, said in a statement: “First-quarter earnings were in line with what we anticipated; however, market demand was weaker than we expected, and was the driving force behind the year-over-year reduction in earnings. ...

“We continue to experience very weak demand across our markets. For many of our businesses, demand seems to have stabilized during the first quarter, albeit at levels below what we anticipated.”

Haffner said the company’s primary strategic objective remains to consistently achieve total shareholder return within the top third of the S&P 500.

“From January 1, 2008, through April 21, 2009, we posted total shareholder return of negative 8 percent,” the statement said. “Our performance for that period, though disappointing, ranks within the top 9 percent of the S&P 500 companies.”

Well-positioned

“Leggett & Platt remains well situated to weather the current challenging economic environment, even if it lasts for an extended period. The company is in an extremely strong financial position with: 1) nearly $600 million available under its existing commercial paper program and revolver facility; 2) net debt-to-capital well below the company’s long-term target; and 3) no significant long-term debt maturing until 2012.”

— Company first-quarter statement