Components supplier Leggett & Platt in Carthage, Mo., reports that it generated $565 million of cash from operations in 2009—its second–highest level ever.
Full–year sales were $3.06 billion. Full–year earnings were $0.70 per share. Fourth–quarter sales totaled $770 million, 13% lower than in the same quarter a year ago. The company attributed the bulk of the decline to steel–related price deflation. Unit volume declined approximately 3% for the quarter. Fourth–quarter earnings were $0.23 per share.
David Haffner, L&P president and chief executive officer, said the company has made much progress, even in a poor economy.
“For the full year, continuing operations earnings per share was relatively unchanged from the prior year, despite a $1 billion, or 25%, decline in sales that was primarily market driven,” Haffner said. “Our significant cost–reduction efforts and pricing discipline allowed us to sustain earnings per share and improve margins, despite the weak economy. Our balance sheet and cash flow remain strong and our cost structure has improved significantly.”
In 2009, the company used $240 million in cash to fund dividends and capital requirements, $188 million to purchase L&P stock and $64 million to reduce debt. Net debt to net capital was 23.7% at year–end—its lowest level in more than a decade and below the company’s 30% to 40% target range.
Total sales from continuing operations in the residential furnishings division, which includes domestic bedding products, decreased $427 million, or 20%, in 2009. Total sales from continuing operations in the specialized products division, which includes the Global Systems Group, decreased $181 million, or 27%.
“I am extremely pleased with our employees’ accomplishments in the face of such economic headwind,” Haffner said. “We are very well positioned to ride out the economic downturn, which we anticipate will continue throughout 2010.”
