Diversified manufacturer and mattress industry supplier Leggett & Platt Inc. reported earnings per share of $0.45 on net income of $61.1 million in the first quarter of fiscal 2019, a 21% drop compared with the same quarter of 2018, the Carthage, Missouri-based company said.
L&P posted sales of $1.16 billion, 12% higher than in the prior-year quarter.
Its 2019 guidance remained unchanged with expected revenue of $4.95 billion to $5.1 billion, and EPS of $2.35 to $2.55.
The first quarter included costs associated with restructuring and the closing of the unprofitable Fashion Bed Group business, as well as transaction costs related to the purchase of foam products company Elite Comfort Solutions in January.
Karl Glassman, L&P president and chief executive officer, said sales gains could be attributed to the Elite Comfort Solutions acquisition. Other sales increases in springs and steel-related businesses were offset by the decision to exit the fashion bed business, softer demand in other segments and other impacts.
“We are exiting low-margin business, reducing operating costs and eliminating excess capacity in our home furniture business, which should be substantially complete by the end of the second quarter,” Glassman said.
He added: “We continue to be excited about the opportunities that the ECS acquisition brings. Demand for their proprietary specialty foams and downstream products is strong, even while the U.S. bedding industry continues to be impacted by unfairly priced Chinese mattresses that are the subject of a pending anti-dumping matter”