Leggett & Platt Reports Records Sales and Earnings in 2015

FashionBedGroup by Leggett & Platt Palmer bed

FashionBedGroup by Leggett & Platt Palmer bed. The company reported record sales and earnings in 2015.

Industry supplier Leggett & Platt Inc., with headquarters in Carthage, Missouri, announced record sales and earnings in 2015.

Full-year net income was $329.2 million, a 225% leap compared with 2014, which was impacted by losses from the discontinued store-fixtures business and a foam-litigation payout. Net sales from continuing operations rose 4% to $3.92 billion, and adjusted earnings per share rose to $2.34, a 31% jump compared with 2014 EPS.

“Our markets improved during the year, and we achieved better-than-market growth in several lines of business,” said Karl Glassman, president and chief executive officer of L&P.

L&P adjusted its 2016 sales guidance slightly downward, by 2% to 3%, due to commodity deflation and the divestiture of its steel tubing business completed in December. But the company expects 2016 sales growth will lead to another year of strong earnings per share, with EPS expected to be $2.30 to $2.50 for the year.

According to Glassman, the company’s three-year total shareholder return ending in 2015 places it in the top third of S&P 500 companies.​

Total 2015 sales in L&P’s Residential Furnishings Segment, which includes bedding components, foam and other bedding-related products, were $1.96 billion, a 5.4% increase.

Annual sales in L&P’s Commercial Products Segment, which includes Fashion Bed Group and adjustable bases, grew to $539.8 million, a 14.5% increase.

In the Industrial Materials Segment, which includes mattress-manufacturing equipment, annual sales dipped to $776.6 million, a 4.5% decline compared with the prior year.

L&P fourth-quarter sales from continuing operations were $945 million, a 1% dip, compared with the prior-year quarter. While unit volume grew 3% and acquisitions added 1% to sales, gains were offset by a 5% decline caused by a slump in steel pricing and the strengthening U.S. dollar, the company said.

Residential Furnishings sales increased 5% to $106 million. Unit volume grew but was partially offset by deflation and currency, while acquisitions contributed 4% to sales growth.

Commercial Products sales grew by 21%, to $108 million. Same location sales grew 12% from strong demand in adjustable bed and Fashion Bed Group, the company said, while acquisitions increased sales by 9%.

Total sales in Industrial Materials decrease by $37 million, or 5%, in the fourth quarter, with higher unit volume in Drawn Wire more than offset by steel-related price decreases and reduced rod mill trade sales, L&P said.

“Looking forward, we expect strong unit volume growth in 2016 across a number of our businesses,” Glassman said. “A good portion of the growth is from new product introductions and the resultant market share gains.”

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