CARTHAGE, Mo. – Industry supplier Leggett & Platt saw its first quarter net income slide 40% to $31.6 million as sales dropped 10% in comparison with the same quarter last year, as sales in the bedding and home furnishings categories continue to struggle.

Sales in the company’s bedding and furniture segments continued to weather the industry’s recession. Bedding products sales dropped 15%, while furniture flooring and textiles product sales tumbled 9%.

Leggett reported $448 million in sales from its bedding sector, and the company’s furniture, flooring and textiles group posted $333 million in sales. Sales in Leggett’s specialized products, including aerospace, dipped 1% to $315.9 million for the quarter.

The company reported overall net sales of $1.1 billion for the quarter ended March 31, a 10% slide compared to $1.2 billion in the same quarter last year.

Mitch Dolloff, president and CEO, said the results were in line with expectations.

“We are making steady progress on the restructuring plan announced in January to optimize our manufacturing and distribution footprint and remain on track to achieve our objectives within our stated timeline,” he said. “We are taking proactive steps to ensure the long-term success of our business and deliver sustainable returns for our shareholders. Our near- to mid-term strategic priorities include strengthening our balance sheet and liquidity, improving margins by optimizing operations and our general and administrative cost structure, and positioning the company for profitable growth opportunities.”

The company pulled back on its historically strong dividend for the fourth quarter to “free up capital to accelerate the deleveraging of our balance sheet and solidify our long-held financial strength,” Dolloff said, adding that the company will grow its business organically and through acquisitions. The board of directors declared a dividend of 5 cents per share for shareholders of record on June 14, a decrease of 41 cents per share compared to the dividend for the second quarter last year.

Leggett said its restructuring plan announced in January for its bedding and furniture, flooring and textiles businesses is progressing according to plan. The company expects an annualized earnings before interest and taxes (EBIT) benefit of between $40 million and $50 million after its initiatives are fully implemented late next year. Between $5 million and $10 million of EBIT benefit is expected to be realized in the second half of 2024.

Looking ahead to the balance of the year, Leggett held its sales and earnings per share guidance steady with sales expected to be between $4.35 billion and $4.65 billion for the year with earnings per share to fall to between 95 cents and $1.25.

See also:

• Downturn in furniture, mattress business pushes Leggett to amend revolving credit agreement
• 1 Leggett & Platt executive to retire, 2 get promoted

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