|L&P’s first quarter|
|Total sales||$947 million|
|Residential furnishings division total sales||$492.6 million|
|Specialized products division total sales||$185.3 million|
Components supplier Leggett & Platt, headquartered in Carthage, Mo., posted sales of $947 million in the first quarter of 2012, a 5.7% increase over the first quarter of 2011.
The company reported that total sales from continuing operations in the residential furnishings division, which includes domestic bedding products, were $492.6 million, an increase of $33 million, or 7.1%, over the first quarter of 2011. Unit volume increased 5%; inflation accounted for 2% of the sales increase, the company said.
Total sales from continuing operations in the specialized products division, which includes the Global Systems Group machinery division, were $185.3 million, an increase of $11 million, or 6%, over the first quarter of 2011.
“We are pleased with first-quarter results,” said David Haffner, L&P president and chief executive officer. “Aggregate unit volume increased, compared to a reasonably strong first quarter last year, and contributed to improved operating results. In addition, we are realizing the expected benefits from the restructuring activities initiated in late 2011 and continue to anticipate meaningful, full-year margin improvement. It is worth noting that our effective first-quarter tax rate was about 300 basis points higher than what we anticipate for the remainder of the year. As a result of our operational performance, we increased our guidance range for both EPS and sales.”
The company’s board of directors declared a $0.28 first-quarter dividend, one cent higher than last year’s first-quarter dividend. It marks the 41st consecutive annual dividend increase for the company, with a compound annual growth rate of 13%.
“We continue to assess our overall performance by comparing our total shareholder return to that of peer companies on a rolling three-year basis,” Haffner said. “For the three-year period that began January 1, 2010, we have, so far (over the last 28 months), generated TSR of 12% per year on average, in line with the TSR of the S&P 500 index. Our target is to achieve TSR in the top one-third of the S&P 500 companies over the long-term.”
Haffner added: “We have maintained our strong financial base. We have over $270 million available under our existing commercial paper program and revolver facility. And we ended the quarter with net debt to net capital at 34%, within our long-term 30% to 40% target range, despite the sizeable acquisition (of Western Pneumatic Tube) we made.”