October 10, 2022

L&P Lowers Guidance

LEGGETT & PLATT LOWERS FULL-YEAR GUIDANCE AND ANNOUNCES RECENT ACQUISITIONS

Oct. 10, 2022 4:10 PM ETLeggett & Platt, Incorporated (LEG)

CARTHAGE, Mo., Oct. 10, 2022 /PRNewswire/ —

• Full year 2022 sales guidance lowered to $5.1–$5.2 billion
• Full year 2022 EPS guidance reduced to $2.30–$2.45
• Acquired a Hydraulic Cylinders business and two Textiles businesses

Diversified manufacturer Leggett & Platt (LEG) lowered its full-year 2022 guidance:

• Sales guidance now $5.1 to $5.2 billion (vs prior $5.2–$5.4 billion)
  • Decrease is primarily due to lower volume than previously expected
• EPS guidance now $2.30 to $2.45 (vs prior $2.65–$2.80) 
  • Decrease is primarily from lower volume, reduced production, slower than anticipated cost recovery in Automotive, and operational inefficiencies in Specialty Foam
  • Expect sequential improvement from 3Q to 4Q
• Based upon this guidance, EBIT margin range should be 9.5% to 10.0% (vs prior 10.5%–10.7%)
• Cash from operations expected to be $400 to $450 million (vs prior $550–$600 million)

President and CEO Mitch Dolloff commented, “The increasingly challenged global economic environment and consumer backdrop is expected to result in lower than previously anticipated sales and earnings in the third and fourth quarters of 2022. Demand in the U.S. bedding market is fairly stable but remains at relatively weak levels as industry headwinds persist, including inflationary and monetary policy impacts on consumer spending and consumer sentiment as well as higher inventory levels. Given the bedding demand environment and slowing market for steel generally, we are cutting production in our Rod and Wire businesses to reduce inventory.

“Our Specialty Foam business has experienced larger demand impacts as a result of previous pandemic-related supply issues and channel specific pressures. Lower demand in Specialty Foam in combination with operational inefficiencies, which are being addressed by continuing integration work, are taking longer than originally expected to resolve.

“Demand in International Bedding has declined more significantly amid geopolitical and macroeconomic disruptions in Europe. Home Furniture demand has softened significantly in the last few months with slower consumer demand and excess inventory at retail.

“Volume and cost recovery are improving sequentially in Automotive, but at a slower rate than anticipated. While improving year-over-year, industry production forecasts remain dynamic as supply chain and geopolitical impacts bring continued volatility.

“We continue to focus on things we can control and are taking action to mitigate the impact of these challenges by aligning costs, production levels, and inventory with demand; evaluating near-term opportunities with our customers and working with them on new product developments; and continuing to build out our existing businesses through acquisitions. Our strong balance sheet and cash flow give us confidence in our ability to navigate challenging markets while investing in long-term opportunities.”

In late August, Leggett & Platt acquired a leading global manufacturer of hydraulic cylinders for heavy construction machinery. The company has manufacturing facilities in Eschwege, Germany and Ningbo, China and a distribution facility in Halifax, Pennsylvania with combined 2021 sales of approximately $65 million. Also, in late August, the Company acquired a converter of construction fabrics for the furniture and bedding industries located in Shannon, Mississippi. On October 3, Leggett & Platt acquired a distributor of geo components located in Ottawa, Canada. Each of these Textiles businesses have annual sales under $10 million. 

https://seekingalpha.com/pr/18969985-leggett-and-platt-lowers-full-year-guidance-and-announces-recent-acquisitions?mailingid=29328173&messageid=2900&serial=29328173.3342

October 10, 2022

L&P Lowers Guidance

LEGGETT & PLATT LOWERS FULL-YEAR GUIDANCE AND ANNOUNCES RECENT ACQUISITIONS

Oct. 10, 2022 4:10 PM ETLeggett & Platt, Incorporated (LEG)

CARTHAGE, Mo., Oct. 10, 2022 /PRNewswire/ —

• Full year 2022 sales guidance lowered to $5.1–$5.2 billion
• Full year 2022 EPS guidance reduced to $2.30–$2.45
• Acquired a Hydraulic Cylinders business and two Textiles businesses

Diversified manufacturer Leggett & Platt (LEG) lowered its full-year 2022 guidance:

• Sales guidance now $5.1 to $5.2 billion (vs prior $5.2–$5.4 billion)
  • Decrease is primarily due to lower volume than previously expected
• EPS guidance now $2.30 to $2.45 (vs prior $2.65–$2.80) 
  • Decrease is primarily from lower volume, reduced production, slower than anticipated cost recovery in Automotive, and operational inefficiencies in Specialty Foam
  • Expect sequential improvement from 3Q to 4Q
• Based upon this guidance, EBIT margin range should be 9.5% to 10.0% (vs prior 10.5%–10.7%)
• Cash from operations expected to be $400 to $450 million (vs prior $550–$600 million)

President and CEO Mitch Dolloff commented, “The increasingly challenged global economic environment and consumer backdrop is expected to result in lower than previously anticipated sales and earnings in the third and fourth quarters of 2022. Demand in the U.S. bedding market is fairly stable but remains at relatively weak levels as industry headwinds persist, including inflationary and monetary policy impacts on consumer spending and consumer sentiment as well as higher inventory levels. Given the bedding demand environment and slowing market for steel generally, we are cutting production in our Rod and Wire businesses to reduce inventory.

“Our Specialty Foam business has experienced larger demand impacts as a result of previous pandemic-related supply issues and channel specific pressures. Lower demand in Specialty Foam in combination with operational inefficiencies, which are being addressed by continuing integration work, are taking longer than originally expected to resolve.

“Demand in International Bedding has declined more significantly amid geopolitical and macroeconomic disruptions in Europe. Home Furniture demand has softened significantly in the last few months with slower consumer demand and excess inventory at retail.

“Volume and cost recovery are improving sequentially in Automotive, but at a slower rate than anticipated. While improving year-over-year, industry production forecasts remain dynamic as supply chain and geopolitical impacts bring continued volatility.

“We continue to focus on things we can control and are taking action to mitigate the impact of these challenges by aligning costs, production levels, and inventory with demand; evaluating near-term opportunities with our customers and working with them on new product developments; and continuing to build out our existing businesses through acquisitions. Our strong balance sheet and cash flow give us confidence in our ability to navigate challenging markets while investing in long-term opportunities.”

In late August, Leggett & Platt acquired a leading global manufacturer of hydraulic cylinders for heavy construction machinery. The company has manufacturing facilities in Eschwege, Germany and Ningbo, China and a distribution facility in Halifax, Pennsylvania with combined 2021 sales of approximately $65 million. Also, in late August, the Company acquired a converter of construction fabrics for the furniture and bedding industries located in Shannon, Mississippi. On October 3, Leggett & Platt acquired a distributor of geo components located in Ottawa, Canada. Each of these Textiles businesses have annual sales under $10 million. 

https://seekingalpha.com/pr/18969985-leggett-and-platt-lowers-full-year-guidance-and-announces-recent-acquisitions?mailingid=29328173&messageid=2900&serial=29328173.3342

October 10, 2022

Q3 Chemical M&A Transactions

Chemical Deal Results

http://www.chemicaldeals.com/Results.aspx?searchtext=&quarter=3rd+Quarter+2022

October 10, 2022

Q3 Chemical M&A Transactions

Chemical Deal Results

http://www.chemicaldeals.com/Results.aspx?searchtext=&quarter=3rd+Quarter+2022

October 7, 2022

Holcim Makes Another Acquisition

Holcim closes Polymers Sealants North America acquisition

• Leading provider of coating, adhesive and sealant solutions with 2022 net sales of USD 100 million
• Expanded waterproofing and coating solutions deliver significant roofing synergies
• Accelerates Holcim’s growth in Solutions & Products to reach 30% of Group net sales by 2025

Holcim has completed the acquisition of the Polymers Sealants North America (PSNA) division of Illinois Tool Works. PSNA is a leader in coating, adhesive and sealant solutions with 2022 estimated net sales of USD 100 million. With more than 150 employees and manufacturing plants in California, Arizona, Texas, Georgia and Massachusetts, PSNA will accelerate the growth of Solutions & Products, especially in waterproofing and coatings. PSNA’s innovation-driven approach is highly complementary to Holcim’s existing building envelope business and is expected to generate significant synergies.

Jamie Gentoso, Head Solutions & Products: “With PSNA we are broadening our waterproofing and coatings offering while delivering significant synergies with our roofing business. Building on their proven engineering and technical expertise, we will accelerate new product development and leading solutions together. I warmly welcome all PSNA employees into the Holcim family and look forward to investing in this business’ next era of growth together. By expanding our building envelope offering, together we can play a bigger role in providing innovative and sustainable solutions for energy-efficient buildings.”

PSNA’s innovation-driven solutions are used in construction as well as other industries such as aerospace composites and wind energy. PSNA is ideally positioned to capitalize on high-growth areas such as commercial re-roofing, green building and energy efficiency. This transaction adds to Holcim’s other recent acquisitions in roofing and insulation, from Firestone Building Products, Malarkey Roofing Products to SES. Pro-forma net sales for Holcim’s roofing and insulation business are on track to reach CHF 3.5 billion for 2022.

About Holcim

Holcim builds progress for people and the planet. As a global leader in innovative and sustainable building solutions, Holcim is enabling greener cities, smarter infrastructure and improving living standards around the world. With sustainability at the core of its strategy Holcim is becoming a net zero company, with its people and communities at the heart of its success. The company is driving circular construction as a world leader in recycling to build more with less. Holcim is 70,000 people around the world who are passionate about building progress for people and the planet through four business segments: Cement, Ready-Mix Concrete, Aggregates and Solutions & Products.

Learn more about Holcim on www.holcim.com, and by following us on LinkedIn and Twitter

https://www.holcim.com/media/media-releases/polymers-sealants-north-america-closing