| BRIEFLY | |
| L&P’s second quarter | |
| Net sales | $939 million |
| Net income | $65.4 million |
| Residential furnishings total sales | $474.7 million |
| Industrial materials total sales | $236 million |
Bedding industry components and machinery supplier Leggett & Platt, based in Carthage, Mo., reported that sales for its second quarter of fiscal 2012 were $939 million, a decrease of 0.7% from the second quarter of 2011. But net income rose 18.6% over the prior-year quarter to $65.4 million.
Second-quarter earnings per share were $0.45, compared with $0.37 in the prior-year period. They included a $0.04 unusual tax benefit and a $0.02 benefit from discontinued operations associated with a previously divested business, the company said.
Acquisitions (net of divestitures) increased sales by 1%, the company said. Same-location sales declined approximately 2% due to lower steel rod sales, currency rates and reduced store fixture sales. Apart from these factors, same-location sales increased 2%, with unit volumes flat to positive across the majority of the company. L&P’s strongest growth continues to come from the automotive and adjustable bed businesses, the company said.
“We are pleased with the progress we continue to make,” said David Haffner, L&P president and chief executive officer. “Second-quarter EBIT (earnings before interest and income taxes ) margin increased from 8.4% last year to 9.2% for 2012. EBIT improved as a result of unit volume growth in certain businesses, our fourth-quarter 2011 restructuring activity and the Western Tube acquisition. We increased our full-year EPS guidance to reflect the positive effect of the second quarter’s unusual items and improved margins.”
At quarter’s end, the company had more than $330 million available under its existing commercial paper program and revolver facility. Its net debt to net capital was 33%, a decrease from 34% in the first quarter—and within L&P’s long-term target range of 30% to 40%, Haffner said.
Sales from continuing operations in L&P’s Residential Furnishings Segment, which includes bedding components, adjustable beds, foam and other bedding-related products, increased $7 million, or 2%, to $474.7 million. Unit volumes were up 3% over the prior-year quarter, but were partially offset by currency rate changes.
EBIT in the residential segment decreased by $1 million, with the benefit from higher unit volumes offset by a weaker mix of sales in certain businesses, the company said.
Total sales in the Industrial Materials Segment, which includes mattress-manufacturing equipment, increased $7 million, or 3%, to $236 million.
The acquisition of Western Pneumatic Tube increased sales by 8%; however, same-location sales decreased 5% due to lower trade sales at the steel rod mill, the company said.
