Aluminum Products - Total sales increased $8 million, or 5 percent, solely from increased same location sales. Inflation added about 2 percent to sales, and unit volumes were up over 3 percent. EBIT decreased 18 percent, or $2.6 million, with increases from higher sales more than offset by higher energy costs and production inefficiencies at some plants.
The company continues to target a 10 percent annual EBIT margin for this segment, and believes that consolidation of one underperforming facility will contribute to future margin improvement.
Industrial Materials - Total sales increased $3 million, or 2 percent. Unit volume declined about 8 percent, but was more than offset by inflation. Decline in volume is attributable to: a) two industrial products customers' movement of some manufacturing overseas, b) reduced demand from auto manufacturers, and c) absence of last year's billet sales to trade customers.
The $12.9 million, or 37 percent, EBIT decrease resulted primarily from lower unit volume and absence of last year's FIFO benefit.
Specialized Products - Total sales decreased $4 million, or 3 percent. Same location sales decreased 3 percent, with a 6 percent unit decline partially offset by the effect of currency rates. EBIT declined $4.0 million, or 25 percent, due to lower unit sales in both the automotive and machinery businesses, and currency impacts.
North America based Leggett & Platt is a Fortune 500 diversified manufacturer that conceives, designs and produces a broad variety of engineered components and products that can be found in virtually every home, office, retail store, and automobile.
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