Diversified manufacturer Leggett & Platt Inc., headquartered in Carthage, Missouri, reported earnings per share of $0.66 in its fourth quarter of fiscal 2019 on profit of $86.8 million. Adjusted for one-time gains and costs, fourth-quarter EPS came to $0.68 per share, topping analysts’ estimates (Zacks Investment Research) by $0.02 per share.
The company posted $1.14 billion in sales for the quarter, a 9% increase compared with revenues in the prior-year quarter.
Full-year sales in 2019 grew 11% to $4.75 billion. Full-year adjusted EPS were $2.57 on profit of $333.8 million.
The company said its acquisition of Elite Comfort Solutions and other smaller acquisitions added 14% to its 2019 sales growth. In 2019, it also benefited from lower raw material costs.
“In 2019, our employees achieved several milestones including … the largest acquisition in company history, record cash flow from operations and our 48th consecutive annual dividend increase,” said Karl Glassman, chair and chief executive officer. “We also announced organizational changes, including segment realignment and key executive and board appointments.
“During 2019, sales grew 11% primarily from the ECS acquisition,” L&P said. “Sales were stronger in U.S. Spring, Automotive, Work Furniture and Aerospace, but these improvements were more than offset by planned lower volume from business exited in Fashion Bed and Home Furniture and weak trade demand in the Industrial Products Segment.”
Fourth-quarter sales in Furniture Products, which includes the Adjustable Bed Group, dropped 5%, due primarily to the company’s decision to exit Fashion Bed. For the full year, sales were down 8% in Furniture Products.
In Industrial Products, which includes steel rod and wire, fourth-quarter sales decreased 24%, due to weakened trade demand for steel rod and wire, as well as raw material-related selling price decreases. For the full year, Industrial Products sales declined 10%.
In Residential Products, which includes bedding components, foam and other bedding-related products, as well as Spuhl AG wire-forming machinery and Global Systems Group, sales grew 32%, with 33% growth from acquisitions (primarily ECS). For the full year, Residential grew 36% — 1% from organic sales growth and 35% from acquisitions, L&P said.
Specialized Products sales grew 4% in the fourth quarter and were flat for the full year.
