Carthage, Missouri-based industry supplier Leggett & Platt reports net income from operations for 2016 of $385.8 million, an 18.7% increase compared with 2015.
Full-year sales were $3.75 billion, a 4% decline compared with the prior full-year results. Unit volume grew 2% and acquisitions contributed 1% to sales growth, but these were more than offset by divestitures, raw material-related price deflation and currency impacts, according to the company.
At $2.62 and increasing 15% over 2015, earnings per share from continuing operations broke previous records. EPS guidance for 2017 is $2.55 to $2.75 on sales of $3.95 billion to $4.05 billion.
For the year, sales of Commercial Products, which includes adjustable beds and the Fashion Bed Group, grew 1% to $630 million.
Total 2016 sales in L&P’s Residential Furnishings Segment, which includes bedding components, foam, other bedding-related products and Spuhl AG wire-forming machinery, were $1.94 billion, a 6% dip compared with full-year 2015.
Sales in the Industrial Materials Segment, which includes steel rod and wire, declined 25%, to $582 million in 2016 due to divestitures, steel-related price increases and lower unit volume, the company said.
Specialized Products Segment sales, which include Global Systems Group, grew 6% to $1 billion, reflecting a 9% volume increase partially offset by divestitures and currency impacts, according to L&P.
“In 2016, our employees generated significant results including record EPS, an EBIT (earnings before interest and taxes) margin in excess of 13%, very strong cash flow from operations and our 45th consecutive annual dividend increase,” said Karl Glassman, L&P president and chief executive officer. “Continuing operations posted 2% unit volume growth, with strong performance in automotive offset by soft demand in several other markets, including bedding and home furniture.
“Looking forward, we expect an approximate $250 million sales increase in 2017. The raw material deflation that impacted sales in 2016 has abated, and inflation is expected in 2017. We anticipate volume increases in our automotive, bedding, adjustable bed, work furniture and Geo Components operations. … During 2016, we acquired three small businesses: a U.S. manufacturer of aerospace tube assemblies, a distributor of geosynthetic products and a South African innerspring manufacturer.”
During the fourth quarter of 2016, L&P reported that net income from operations increased 1% to $81.6 million compared with the final quarter of 2015. Sales were $903.7 million, a 4% dip compared with the prior-year quarter. EPS from continuing operations were $0.60, compared with $0.57 the year before.
Fourth-quarter sales in the Commercial Products Segment were flat at $151.5 million. In Industrial Materials, total sales decreased 21% to $130.5 million in the final quarter, largely due to divestitures. In Residential Furnishings, sales declined 6% to $464.4 million. Specialized Products segment sales grew by 3% to $249.7 million, compared with the prior-year quarter.
