| BRIEFLY | |
| L&P third-quarter snapshot | |
| Sales from continuing operations | $1.01 billion |
| Earnings per share | $0.67 |
| Residential Furnishings | Segment sales Down 1% |
| Industrial Materials Segment sales | Down 14% |
Industry supplier Leggett & Platt reported third-quarter sales from continuing operations of $1.01 billion, a 1% increase compared with the prior-year quarter, and a new quarterly record for the Carthage, Missouri-based company. Same location sales grew 5%, and acquisitions added 2% to sales; these gains were largely offset by a 6% decline due to raw material price deflation and currency impacts, according to the company.
Third-quarter earnings per share from continuing operations also set a new quarterly record, reaching $.67, a 31% increase compared with an adjusted EPS of $0.51 in the same quarter of 2014. The increase was due to higher unit volumes and pricing discipline, L&P said.
“We continue to be very pleased with our performance this year,” said David Haffner, L&P board chair and chief executive officer. “We posted record sales, EBIT and EPS during the third quarter, extending our string of strong quarterly results that began in the second quarter of 2014. Year-to-date continuing operations EPS improved 24%, to $1.70 this year versus $1.37 last year (excluding last year’s foam litigation expenses).
“Nearly all of our businesses experienced volume growth during the quarter, despite strong prior year comparisons. During the third quarter we saw unit volume growth of 37% in Comfort Core innersprings and 55% in adjustable beds. We also experienced continued strong organic volume growth in both Automotive and European Spring. These volume gains are masked by the deflation and currency impacts we have been experiencing.
“We are achieving these results while maintaining our strong financial base, Haffner continued. “At quarter’s end, we had $375 million available through our commercial paper program. Net debt to net capital was 36%, comfortably within our 30% to 40% target range.”
Total sales in L&P’s Residential Furnishings Segment, which includes bedding components, adjustable beds, foam and other bedding-related products, were $527 million, a 1% decrease compared with second-quarter 2014. Same location sales declined 2%, while higher unit volume in most product categories were offset by the impact of raw material-related price deflation and currency impacts. Acquisitions increased sales by 1%. EBIT increased by $33 million with the nonrecurrence of last year’s $32 million foam litigation expense.
Total sales in the Industrial Materials Segment, which includes mattress manufacturing equipment, decreased 14% to $102.9 million, largely due to steel-related price deflation, the company said. Unit volumes were down slightly. EBIT increased $2 million, primarily from cost reductions.
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