| BRIEFLY | |
| L&P first-quarter results | |
| Net sales | $919 million |
| Residential furnishings total sales | $489.1 million |
| Specialized products total sales | $187.4 million |
Industry supplier Leggett & Platt, with headquarters in Carthage, Missouri, posted sales of $919 million in the first quarter of 2014, a 1.5% decrease over the first quarter of 2013.
The company reported that total sales from continuing operations in the residential furnishings division, which includes domestic bedding products, were $489.1 million, an increase of $12 million, or 2%, over the prior-year quarter. Volume growth in the furniture components and international spring businesses were partially offset by soft demand in the U.S. spring business unit.
EBIT (earnings before interest and income taxes) increased $9 million due primarily to higher sales and cost improvements, L&P said. A $4 million gain on a 2014 real estate sale was largely offset by the nonrecurrence of last year’s $3 million gain from a hurricane-insurance claim.
Total sales from continuing operations in the specialized products division, which includes the Global Systems Group machinery division, were $187.4 million, an increase of $12 million, or 6%, over the first quarter of 2013. EBIT increased $9 million, due to higher sales and the nonrecurrence of $5 million in litigation fees.
The company reported earnings of $0.37 per share, a first-quarter record for EPS from continuing operations. In 2013, first quarter EPS was $0.33. The improvement reflects a better sales mix across business units and a modest gain on the sale of a building. These factors were partially offset by lower same-location sales.
“In spite of the unusually harsh weather, we are pleased with our start to 2014,” said David Haffner, L&P chief executive officer and board chair. “Though sales declined, our EBIT margin held ground, and we exited the quarter with improving demand. We are sufficiently encouraged by recent strength in key markets to raise the low end of our EPS guidance.
“Since 2007, our primary long-term financial goal has been to consistently rank in the top third of the S&P 500 companies for total shareholder return, as measured over rolling three-year periods,” Haffner continued. “For the three-year period that began January 1, 2012, we have so far (over the last 28 months) generated TSR performance that places us just above the midpoint of the S&P 500 companies, but shy of our goal.”
The company’s board of directors declared a $.30 dividend, one cent higher than the first-quarter dividend of 2013. This marks the 43rd consecutive annual dividend increase for the company, with a compound annual growth rate of 13%. L&P said it is proud of its long record of dividend growth, which it shares with just one other company.
“We continue to maintain our strong financial base,” Haffner said. “At quarter’s end we had over $450 million available under our existing commercial paper program. We ended the quarter with net debt to net capital at 31.5%, near the conservative end of our long-term 30%-40% target range. Given anticipated sales growth, in 2014 we expect another year of record earnings from continuing operations. And as we look beyond 2014, we are encouraged by the positive momentum of several businesses including automotive, aerospace, bedding, furniture and office.”
