Continued weakness in its bedding, furniture, flooring and textiles businesses led to a 9% third-quarter sales decline and a 26% drop in net income at Leggett & Platt.
The Carthage, Missouri-based company said sales tumbled 17% in its bedding products segment — its largest business segment — and were down 11% in the furniture, flooring and textiles segment. Sales from the specialized products segment, which includes its automotive and aerospace businesses, rose 10% in the quarter.
Companywide sales for the quarter ended Sept. 30 totaled $1.175 billion, down from $1.294 billion in last year’s third quarter.
Net income was $52.8 million, or 39 cents per share. That was down from $71.4 million or 52 cents per share, in last year’s third quarter.
“We are focused on anticipating and adapting to market changes, improving operating efficiency, driving strong cash management, and engaging with our customers on new product opportunities,” said Mitch Dolloff, president and CEO. “We are evaluating opportunities across our businesses, including further integration of our specialty foam and innerspring operations, that are expected to support improved profitability, a strong balance sheet and continued shareholder returns.”
The company said third-quarter sales in the bedding products segment totaled $483.3 million, down from $582 million in the same quarter last year. The furniture, flooring and textiles products segment recorded sales of $372.7 million, down from $421.1 million in last year’s third quarter.
For the first three quarters of 2023, bedding products sales were down 17% to $1.516 billion, while furniture, flooring and textiles products were down 13% to $1.133 billion.
Company-wide, sales for the first three quarters were down 9% to $3.61 billion, and net income fell 38% to $160.5 million, or $1.18 per share, in the same period.
In addition, Dolloff said Leggett & Platt has again lowered its sales and earnings projections for the 2023 calendar year due to continued volatility in the macro-economic environment, continued weak consumer demand for bedding and furniture, and the “modest” impact of the United Auto Workers strike against Ford, General Motors and Stellantis.
The company is now projecting 2023 sales of $4.7 billion to $4.75 billion, which is down from an August projection of $4.75 billion to $4.95 billion. The new estimates represent a decline of 8% to 9% from 2022.
Earnings per share are now projected at $1.45 to $1.55. That’s down from an August projection of $1.50 to $1.70.
