Leggett & Platt, a components supplier headquartered in Carthage, Mo., generated $874 million in sales from continuing operations during the second quarter of 2010, a 15% increase over the same period in 2009. Second–quarter earnings were $0.34 per share. Unit volumes increased approximately 14%.
“We are encouraged to see continued sales growth,” said David Haffner, L&P president and chief executive officer. “Our cash flow remains strong and debt levels remain low. We acknowledge the recent weakness in both investor and consumer sentiment, but remain guardedly optimistic.”
In the second quarter, the company repurchased 2.3 million shares of its stock at an average price of $23.17 per share. Outstanding shares declined to 146.6 million. Net debt to net capital was 27.3%—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 $37 million, or 9%, during the second quarter over the same period last year. Total sales from continuing operations in the specialized products division, which includes the Global Systems Group machinery division, increased $36 million, or 30%.
“Near term, growth should significantly exceed our 4% to 5% long–term goal as the economy recovers,” Haffner said. “Long term, we believe that modest sales growth, continued margin improvement, our dividend yield and stock buybacks will enable us to achieve our goal of generating total shareholder return that ranks within the top one–third of the S&P 500.”
