The Urethane Blog

L & P Results

Leggett & Platt Reports Record 3Q Sales

CARTHAGE, Mo., Nov. 1, 2021 /PRNewswire/ —

  • 3Q sales were a quarterly record1 $1.32 billion, a 9% increase vs 3Q20
  • 3Q EBIT was $144 million, down $6 million vs 3Q20 and down $12 million vs 3Q20 adjusted2 EBIT
  • 3Q EPS was $.71, a decrease of $.08 vs 3Q20 and a decrease of $.11 vs 3Q20 adjusted2 EPS
  • Narrowing 2021 guidance: sales of $5.0–$5.1 billion; EPS of $2.86–$2.96; adjusted2 EPS of $2.70–$2.80­

Diversified manufacturer Leggett & Platt reported record1 quarterly sales in third quarter of $1.32 billion, a 9% increase versus third quarter last year.

  • Organic sales were up 8%
    • Volume was down 6%, largely due to supply chain constraints impacting the Bedding and Automotive markets
    • Raw material-related selling price increases of 13% and currency benefit of 1% added to sales growth
  • Acquisitions, net of divestitures, increased sales 1%

Third quarter EBIT was $144 million, down $6 million or 4% from third quarter 2020 and down $12 million or 8% from third quarter 2020 adjusted2 EBIT. EBIT declined primarily from lower volume partially offset by metal margin expansion in our Steel Rod business.

  • 3Q 2020 adjustments include $6 million of restructuring-related charges
  • EBIT margin was 10.9%, down from 12.4% in the third quarter of 2020 and down from an adjusted2 EBIT margin of 12.9%

Third quarter EPS was $.71, a decrease of $.08 versus third quarter 2020 and a decrease of $.11 versus third quarter 2020 adjusted2 EPS. The decline reflects lower EBIT and a higher tax rate ($.05/share), primarily from retroactive benefits related to certain tax regulations issued in the third quarter of last year. 

Chairman and CEO Karl Glassman commented, “Like many other companies, our teams continue to navigate a myriad of macro market challenges, including supply chain issues related to semiconductor shortages, foam chemical shortages, labor availability, freight challenges, as well as higher costs associated with each of these issues. Despite these headwinds, we delivered record1 quarterly sales and solid operating results in the third quarter.

“Leggett remains well-positioned, both competitively and financially, to capitalize on long-term opportunities in our various end markets. Our enduring long-term fundamentals give us confidence in our ability to continue creating long-term value for our shareholders.”

SEGMENT RESULTS – Third Quarter 2021 (versus 3Q 2020)

Bedding Products –

  • Trade sales increased 13%
    • Volume decreased 8%, primarily from challenges with chemical and labor availability in the U.S. bedding market and European demand returning to more normal seasonal levels
    • Raw material-related selling price increases added 19%
    • Currency benefit increased sales 1%
    • Acquisitions, net of divestitures, added 1% to sales growth
      • The Kayfoam acquisition completed in June 2021 contributed 3% to sales
      • Divestitures of small operations in Drawn Wire decreased sales by 2%
  • EBIT increased $5 million, primarily from higher metal margin, partially offset by lower volume, production inefficiencies driven by supply chain constraints, and higher freight costs

Specialized Products –

  • Trade sales decreased 3%
    • Volume decreased 7% from lower sales in Automotive due to semiconductor shortages impacting global automotive production, partially offset by sales growth in Hydraulic Cylinders and Aerospace
    • Currency benefit increased sales 3%
    • Small Aerospace acquisition added 1% to sales
  • EBIT decreased $10 million, primarily from lower volume in Automotive

Furniture, Flooring & Textile Products

  • Trade sales increased 12%
    • Volume decreased 1%, with growth in Work Furniture and Home Furniture more than offset by declines in Textiles and Flooring
    • Raw material-related selling price increases added 13%
  • EBIT decreased $1 million, primarily from lower volume