Diversified manufacturer Leggett & Platt has reported earnings of $.24 per diluted share for the fourth quarter, at the high end of the 14-24 cent guidance range issued on October 19.
Fourth quarter earnings include 16 cents per share for non-recurring costs and an offsetting 5 cents per share gain (for a one-time tax benefit). Per share earnings in the fourth quarter of 2004 were $.33.
Record fourth quarter sales of $1.34 billion were 4.5 percent higher than in the fourth quarter 2004, due to recent acquisitions. Same location sales were essentially flat.
Full year sales increased 4.2 percent, or $214 million, to a record of $5.30 billion. Same location sales increased 2.1 percent, and acquisitions also contributed 2.1 percent to sales growth. Growth in same location sales was primarily the result of inflation (mostly in the first quarter of 2005).
Felix Wright, Chairman and CEO said, "We are pleased to have posted fourth quarter earnings at the upper end of our guidance, even though restructuring-related costs were recognized more quickly than we anticipated. Since we were able to accelerate our restructuring effort, we recorded $39 million of restructuring-related expense in the quarter versus the $15-20 million that we originally expected. Workers compensation expense was also higher than we forecast, but was more than offset by a one-time reduction in taxes.
"Looking at the full year, there were numerous accomplishments, anda few disappointments. The accomplishments include a new sales record, a solid acquisitions year, strong cash flow, repurchase of 5% of the company's stock, a timely debt issuance, and the addition of two non-management directors to our Board of Directors. The disappointments include performance that drove us to initiate a significant company-wide restructuring effort, and the lack of margin improvement in the Fixture & Display operations.
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