| BRIEFLY | |
| Second-quarter snapshot | |
| Sales from continuing operations | $997 million |
| Earnings per share | $0.54 |
| Residential Furnishings Segment sales | Up 10% |
| Industrial Materials Segment sales | Down 9% |
Industry supplier Leggett & Platt, with headquarters in Carthage, Missouri, reported sales from continuing operations for the second quarter of fiscal 2015 were $997 million, an increase of 4% when compared with the prior-year quarter. Sales volume grew 9%—roughly half from same-location unit volume and half from acquisitions, but was partially offset by a 5% impact from raw material-related price deflation and currency translation, according to the company.
At the same time, L&P reported record quarterly earnings per share of $0.54. EPS from continuing operations was $0.53, an increase of 10% versus the same period in 2014. Earnings were boosted primarily by higher unit volumes, partially offset by a higher effective tax rate, the company said. L&P raised its 2015 EPS guidance to an anticipated, record EPS of $2 to $2.15 on sales of $3.95 billion to $4.1 billion.
“We continue to be very pleased with the progress we’re making in 2015,” said David Haffner, L&P board chairman and chief executive officer. “In the second quarter, we extended our string of strong quarterly results that began in the second quarter of last year. Nearly all of our businesses experienced volume growth during the quarter, despite strong prior-year comparisons. During the second quarter, we saw unit volume growth in excess of 70% in Comfort Core innersprings and in adjustable beds. In addition, we experienced organic volume growth in excess of 10% in U.S. spring, fashion bed, automotive, aerospace and machinery (segments).”
Haffner also touted those EPS results, saying, “We posted record sales and EPS during the second quarter and achieved our highest quarterly EBIT (earnings before interest and taxes) margin in 15 years. For the full year, we expect similar results: record sales from continuing operations, our highest EBIT margin since 2000 and record EPS.”
Total sales in L&P’s Residential Furnishings Segment, which includes bedding components, adjustable beds, foam and other bedding-related products, were $522.2 million, a 10% increase compared with second-quarter 2014. Same-location sales improved 3%, with higher unit volume in most product categories, partially offset by the impact of raw material-related price deflation and currency translation, the company said. Acquisitions increased sales by 7%. EBIT increased $2 million.
Total sales in the Industrial Materials Segment, which includes mattress manufacturing equipment, were $172.3 million, a 9% decrease compared with the prior-year quarter, due to steel-related price decreases, the company said. Unit volumes were basically flat. EBIT increased $6 million, primarily from cost reductions and pricing discipline, L&P said.
