Industry supplier Leggett & Platt Inc. posted first-quarter sales of $1.045 billion, a 9% dip compared with the first quarter of fiscal 2019. Organic sales were down 12% due to the COVID-19 pandemic in the last two weeks of the quarter and exited business, while acquisitions (Elite Comfort Solutions) added 3% sales growth, the Carthage, Missouri-based company said.
Net earnings declined 24% to $45.7 million on lower volumes and uncollectible accounts expenses.
Earnings per share in the quarter were $0.34, compared with $0.45 for the prior year.
RESULTS
Net sales
$1.045 billion
Net earnings
$45.7 million
Adjusted EPS
$0.34
Segment results
Bedding Products
-11%
Furniture, Flooring & Textile Products
-5%
Specialized Products
-11%
As of May 4, when earnings results were filed, L&P had disclosed to the state of Missouri three separate furlough actions of a total of 720 employees in its hometown.
“Like so many in our community and around the world, we are facing significant business challenges as a result of the COVID-19 pandemic,” said Karl Glassman, L&P chair and chief executive officer. “These extraordinary circumstances have forced us to make very difficult decisions as we take steps to reduce costs during this period of drastic decreases in demand. We rapidly deployed cost-savings measures across the company, significantly reducing production levels and enacting temporary layoffs. We are also aggressively reducing fixed costs and cutting capital spending. … The diversity of our businesses makes us stronger. We have an outstanding track record of strong cash flow and we remain committed to our long-standing transparency and financial discipline. We are focused on doing everything we can to return our employees to work. We are confident we will emerge from this crisis in a very strong position.”
In response to the pandemic, the company said it has taken a series of steps to reduce expenses and that it is focused on preserving capital, optimizing cash flow, carefully monitoring liquidity and cash position, and protecting the health of its employees and the financial well-being of the company in uncertain times.
In January, L&P reorganized its business into three segments — Bedding Products; Furniture, Flooring & Textile Products; and Specialized Products. Each of the three segments holds sub-groups with a total of 15 business units. These operate 140 manufacturing facilities in 18 countries.
All business units serving the sleep products industry are now part of Bedding Products. Bedding Products includes adjustable beds, steel rod and wire, foam and springs, and all bed- and spring-making machinery. For a detailed explanation of the new company structure, check the Leggett & Platt website, Leggett.com/Segments, or its 2019 annual report.
First-quarter sales in Bedding Products decreased 11%, due to exited business, as well as reduced demand in U.S. spring, offset by growth in adjustable bed and the ECS acquisition, L&P said. In Furniture, Flooring & Textile Products, sales declined 5%. In Specialized Products, sales dropped 11%
