Diversified manufacturer and mattress industry supplier Leggett & Platt Inc. reported earnings per share of $0.64 on net income of $86.2 million in the second quarter of fiscal 2019, a 1% increase compared with the same quarter of 2018, the Carthage, Missouri-based company said.
While EPS beat the Zacks Consensus Estimate, second-quarter net sales of $1.21 billion (a 10% increase compared with the prior-year quarter) missed the consensus mark of $1.28 billion.
The company lowered its 2019 guidance with expected sales of $4.7 billion to $4.85 billion (previously, $4.95 billion to $5.1 billion) and EPS of $2.30 to $2.50 (previously, $2.35 to $2.55).
The company said its purchase of foamer Elite Comfort Solutions, which was finalized in the first quarter, helped bolster sales growth, and that trend will continue.
“Sales grew 10% in the second quarter, primarily from the ECS acquisition,” said Karl Glassman, L&P president and chief executive officer. “Sales also increased from continued market share and content gains in U.S. Spring, which was up 4% in the quarter, but this improvement was more than offset by lower volume from business exited in our Furniture Products Segment, weak trade demand in the Industrial Products Segment and softer demand in Automotive.
“For the full year, sales growth will benefit significantly from the ECS acquisition. In addition, we continue to expect sales growth in automotive, U.S. Spring, aerospace, hydraulic cylinders and work furniture, more than offset by the exit of both Fashion Bed and lower margin business in Home Furniture. Demand for our bedding products remains strong and will benefit from the preliminary dumping duties on Chinese mattresses that were recently imposed by the Department of Commerce.”
