Leggett & Platt Reports Record 2Q Results

Furniture World News Desk on 8/3/2021

Diversified manufacturer Leggett & Platt reported record quarterly sales in second quarter of $1.27 billion, a 50% increase versus second quarter last year.

• Organic sales were up 50%
  
  • Volume was up 31%, reflecting strong recovery in most of their businesses and increased demand versus 2Q 2020, which was significantly impacted by the COVID-19 pandemic
  • Raw material-related selling price increases of 16% and currency benefit of 3% added to sales growth
• Acquisitions and divestitures offset each other

Second quarter EBIT was $172 million, up $149 million from second quarter 2020. Adjusted EBIT was $144 million, a second quarter record and an increase of $94 million from second quarter 2020 adjusted2 EBIT

• EBIT and adjusted EBIT benefited primarily from volume growth and metal margin expansion
  • Maintained $20 million of fixed cost reductions implemented in 2020 (versus $36 million in 2Q20)
  • 2Q 2021 adjustment for a $28 million gain on the sale of real estate associated with our exited Fashion Bed business
  • 2Q 2020 adjustments include a $25 million goodwill impairment charge related to Hydraulic Cylinders business and $2 million of restructuring charges primarily from pandemic-related cost reductions
• EBIT margin was 13.5% and adjusted2 EBIT margin was 11.3%, up from 6.0% in the second quarter of 2020

Second quarter EPS was $.82, an increase of $.87 versus second quarter 2020. Second quarter adjusted2 EPS was $.66, up $.51 versus adjusted EPS in second quarter 2020.

Chairman and CEO Karl Glassman commented, "Our employees continued to drive strong results in the second quarter despite a challenging macroenvironment. Due to their tremendous efforts, we are pleased to deliver all-time quarterly record1 sales along with record second quarter adjusted2 EBIT and EBITDA. While we continue to navigate inflationary pressures along with supply chain disruptions, consumer demand remains strong and we are increasing our full year guidance.

"We are also pleased to announce that on June 4, we acquired a leading provider of specialty foam and finished mattresses primarily serving customers in the UK and Ireland. The company, Kayfoam, is located near Dublin and has two manufacturing facilities with combined annual sales of approximately $80 million. Kayfoam expands the capabilities of our European Bedding business and establishes a platform in foam technology and finished mattress production. Similar to our U.S. Bedding business, this acquisition allows us to support our European bedding customers anywhere in the value chain from innerspring and foam components to finished products including private label mattresses, toppers, pillows, and other bedding accessories.

"Finally, we remain focused on cash generation while reducing debt and deploying capital in a balanced and disciplined manner that positions us to capture near- and long-term growth opportunities, both organically and through strategic acquisitions."

About Leggett & Platt 

Leggett & Platt (NYSE: LEG) is a diversified manufacturer that designs and produces a broad variety of engineered components and products that can be found in most homes and automobiles. The 138-year-old Company is comprised of 15 business units, 21,000 employee-partners, and 135 manufacturing facilities located in 18 countries.  Leggett & Platt is a member of the S&P 500 and the S&P 500 Dividend Aristocrats, and is one of Fortune's  World's Most Admired Companies.

Leggett & Platt is the leading U.S.-based manufacturer of: a) bedding components; b) automotive seat support and lumbar systems; c) specialty bedding foams and private label finished mattresses; d) components for home furniture and work furniture; e) flooring underlayment; f) adjustable beds; and g) bedding industry machinery.

For more information, visit www.leggett.com.