Leggett Reports Record Second Quarter and First Half Results

Furniture World Magazine

Leggett & Platt (NYSE: LEG) reported record sales and earnings for the second quarter and first half of this year. For the quarter, sales increased to $1.1 billion (up 17.2%) and earnings per diluted share increased to $.38 (up 5.6%) -- both compared with the 1999 second quarter. First half sales were $2.1 billion (up 17.4%) and earnings were $.75 per diluted share (up 8.7%) - both compared with 1999. "Our second quarter performance was right in line with expectations we announced last month," said Felix Wright, President and CEO. "Strong sales growth reflected ongoing benefits from our active acquisition program. Roughly three-fourths of our growth for the quarter and the first six months resulted from numerous acquisitions we completed over the past year. Same location volume increased approximately 3% in the second quarter and 4% in the first six months as many operations achieved excellent improvements." "Earnings growth lagged our sales growth primarily because of disappointing second quarter performance in some of our store fixtures and display operations and our aluminum operations. However, it's important to note these are isolated, short-term issues and we are expecting improvements in both areas during the balance of this year and into 2001." "Our second quarter acquisition activity was very productive. Seven businesses with annualized sales totaling about $255 million joined our growing family of Leggett companies. These new operations and the six businesses we acquired in the first quarter have collectively expanded our annualized volume by about $370 million, or 10% when compared with our 1999 full year sales. We look forward to their ongoing contributions to our profitable growth." "We maintain a positive outlook for the balance of this year, and over the long-term as well. We continue to target 15% growth, on average, in both sales and earnings. As we announced in June, we are expecting full year 2000 earnings to be in a range of $1.51 to $1.60 per diluted share, making this our ninth consecutive year with record-setting results. We also are continuing to anticipate variable quarterly results from the seasonal businesses within our family of companies and the timing of acquisition closings."