Hampered by weak consumer demand for bedding, furniture, textiles and related products, Leggett & Platt said second-quarter sales fell 8% to $1.22 billion and earnings tumbled 43% to $54.2 million or 40 cents per share.
The company said sales declines in its bedding products segment and furniture, flooring and textiles product segment more than offset a 23% sales increase in its specialized products segment.
Sales in the bedding products segment totaled $504.4 million, down 18% from last year’s second quarter, while sales in the furniture, flooring and textiles segment were down 14% to $395.6 million.
The only business reporting a sales increase within the bedding segment was specialty foam, but that wasn’t enough to offset volume declines in other bedding-related businesses, the company said.
The specialized product segment, which includes businesses such as automotive seating support and aerospace tubing, recorded second-quarter sales of $321.2 million, up from $260.1 million in last year’s second quarter.
“We are maintaining our emphasis on improving areas within our control and proactively addressing the effects of the macroeconomic impacts on our business,” said Mitch Dolloff, president and CEO. “Our employees are doing an excellent job engaging with our customers on new product opportunities and driving operational efficiency and strong cash management.”
For the first six months of 2023, companywide sales were $2.43 billion, down 8% from $2.66 billion in the first half of 2022. Six-month net income totaled $107.7 million or 79 cents per share. That was down from $185.6 million or $1.36 per share in the same period last year.
Leggett & Platt also trimmed its sales and earnings forecast for 2023. It is now projecting sales of $4.75 billion to $4.95 billion for the year, down from a February forecast of $4.8 billion to $5.2 billion. Earnings are now projected to be $1.50 to $1.70 per share, down from the February forecast of $1.50 to $1.90 per share.
In 2022, the company had sales of $5.15 billion and earnings of $2.27 per share.
“Our previous guidance anticipated a modest improvement in the residential end markets in the second half of the year,” Dolloff said. “We are encouraged by the continued recovery in our industrial businesses but have yet to see an upward trajectory in residential end markets.”
