Leggett is enc their aged about the acquisition opportunities it is currently seeing. The acquisition database continues to expand, and the quality and economic health of potential candidates seems to be improving.
Leggett continues to target annual sales growth of 10 percent -15 percent, and believes that acquisitions alone should contribute 6 percent - 9 percent annual sales growth in future years.
2005 Full Year Outlook: Guidance narrowed to $1.55-$1.65 EPS The company's earnings guidance for the full year 2005 has been narrowed to $1.55-$1.65 per share (from the previous range of $1.50 - $1.70).
The company anticipates full year 2005 total sales growth of 3 percent - 5 percent, with same location sales posting about half of the growth, and acquisitions contributing the balance.
Two issues - reduced selling prices (versus those assumed in January guidance) in certain product categories, and some customers' choice to offset inflation by switching to less expensive components -- have contributed to reduced organic growth expectations for the year. Same location sales growth was 8 percent in the first quarter, and 2 percent in the second quarter. For the second half of the year same location sales are expected to be roughly identical to the prior year.
For the third quarter, Leggett anticipates trade sales of $1.34-1.39 billion. This forecast incorporates sequential improvement (versus the second quarter) of: a) $10to $60 million organic growth, consistent with the company's typical seasonal pattern of sales, and b) about $20 million of incremental revenue from acquisitions. At this sales level, same location sales would be essentially unchanged from 3Q 2004.
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