Components supplier Leggett & Platt in Carthage, Mo., reports that it generated $816 million in sales from continuing operations during the first quarter of 2010, a 14% increase over the same period in 2009. First–quarter earnings were $0.29 per share. Unit volumes increased approximately 18%, but were partially offset by reduced prices associated with steel–related deflation, the company said.
David Haffner, L&P president and chief executive officer, said earnings were up due to the market’s improvement and sales growth, combined with the company’s 2009 cost–cutting measures.
“Our balance sheet and cash flow remain strong,” Haffner said. “We have essentially concluded the first part of the three–part strategic plan we announced in November 2007, having successfully refocused the company by divesting low–performing businesses. We’ve also made substantial progress on the second step of the plan—to improve margins and returns on the businesses we have kept—despite significant declines in market demand. The third step of our strategy is to grow the company at 4% to 5% per year, on average, over the long term.”
In the first quarter, the company repurchased 2 million shares of stock and outstanding shares declined to 147.8 million. Net debt to net capital was 25.6% at the close of the quarter—well below the company’s 30% to 40% target range.
Total sales from continuing operations in the residential furnishings division, which includes domestic bedding products, increased $20 million, or 5%, during the first quarter over the same time last year. Total sales from continuing operations in the specialized products division, which includes the Global Systems Group machinery division, increased $32 million, or 31%.
“For the next couple of years, gradual market recovery should provide ample growth and we should benefit significantly from our advantaged competitive positions, improved cost structure and spare production capacity,” Haffner said. “Longer term, we aim for growth to come from development and commercialization of innovative new products and from identification of and expansion into potential new growth platforms.”
