Leggett & Platt said second-quarter sales fell 6% to $1.06 billion, but the company reversed a net loss from last year’s second quarter and recorded a profit of $52.5 million, or 38 cents per share.
The figures included an 11% drop in sales in the bedding products segment, the company’s largest business unit. Sales in that segment totaled $391.4 million in the quarter, down from $438 million in the same period last year. The company attributed the decline to softness in the U.S. and European bedding markets, retail merchandising changes that affected its adjustable bed product line, and sales attrition from a restructuring plan that saw Leggett & Platt close several factories and sell some businesses.
The company said the restructuring enabled the bedding segment to increase adjusted EBIT (earnings before interest and taxes) by $12 million during the quarter.
Sales in its furniture, flooring and textile products segment fell 2% to $362.5 million, while sales in the specialized products segment dropped 5% to $304.1 million. The specialized products segment includes the aerospace products group, which the company has agreed to sell to private equity firm Tinicum Inc. for $285 million.
“We are pleased to report another quarter of profitability improvement,” said Karl Glassman, president and CEO. “We further strengthened our balance sheet by reducing debt and favorably amending our revolving credit facility. We also remain on track to complete the sale of our Aerospace business this year.
“In the face of ongoing macroeconomic headwinds and uncertainty surrounding global trade policy, we remain confident in the strength and resilience of our business,” he added.
Glassman said the restructuring effort, which began more than a year ago, added $13 million to EBIT in the second quarter, and should add $60 million to $70 million annually once it is fully implemented.
Company-wide, the sales attrition should total about $65 million annually when the plan is completed, he explained.
For the six months that ended June 30, total sales were $2.08 billion, down 7% from $2.23 billion in the first half of 2024.
Six-month net income was $83.1 million, or 60 cents per share. That compares with a net loss of $570.6 million, or $4.16 per share in the same period last year.
The company reaffirmed an annual sales projection of $4 billion to $4.3 billion that was issued earlier this year. The projection assumes Leggett & Platt will own the aerospace business for the entire year. That unit had sales of $190 million in 2024.
Earnings per share for this year are now expected to be 88 cents to $1.17. That compares with the previous estimate of 85 cents to $1.26.
Read more industry news at bedtimesmagazine.com/.
