LEGGETT & PLATT REPORTS 3Q RESULTS

Oct. 31, 2022 4:10 PM ETLeggett & Platt, Incorporated (LEG)

Q3: 2022-10-31 Earnings Summary

EPS of $0.52 beats by $0.03 | Revenue of $1.29B (-1.88% Y/Y) beats by $59.65M

CARTHAGE, Mo., Oct. 31, 2022 /PRNewswire/ — 

• 3Q sales were $1.29 billion, a 2% decrease vs 3Q21
• 3Q EBIT of $113 million, down $31 million vs 3Q21
• 3Q EPS of $.52, a decrease of $.19 vs 3Q21
• 2022 guidance unchanged from October 10 announcement: sales of $5.1–$5.2 billion; EPS of $2.30–$2.45

Diversified manufacturer Leggett & Platt (LEG) reported third quarter sales of $1.29 billion, a 2% decrease versus third quarter last year.

• Organic sales¹ were down 3%
  • Volume was down 8%, primarily from continued demand softness in residential end markets, partially offset by growth in automotive and industrial end markets
  • Raw material-related selling price increases added 8% to sales
  • Currency impact decreased sales 3%
• Previously announced Hydraulic Cylinders and Textile acquisitions completed in August, net of small divestitures, added 1% to sales

Third quarter EBIT was $113 million, down $31 million from third quarter 2021.

• EBIT decreased primarily from lower volume, lower overhead absorption from reduced production, and operational inefficiencies in Specialty Foam, partially offset by metal margin expansion
• EBIT margin was 8.7%, down from 10.9% in the third quarter of 2021

Third quarter EPS was $.52. EPS decreased $.19 versus third quarter 2021 primarily reflecting lower EBIT. 

CEO COMMENTS
President and CEO Mitch Dolloff commented, “The current global economic environment and its effect on the consumer negatively impacted our third quarter results. As anticipated, we continue to experience demand and margin recovery in our Specialized Products segment. The U.S. bedding market remains fairly stable but at relatively weak levels, and we began to see slowing in other markets such as European bedding, home furniture, work furniture, and steel. As a result of these lower demand levels and the increasingly challenging macroeconomic environment, we lowered our full year guidance on October 10th.

“Third quarter earnings per share were slightly better than expected primarily due to incentive compensation adjustments. At the midpoint of guidance, fourth quarter is now expected to be slightly lower than third quarter primarily due to further reductions in steel rod production in response to the slowing steel market.

“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.”

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