PR Newswire
CARTHAGE, Mo., Aug. 3, 2020
CARTHAGE, Mo., Aug. 3, 2020 /PRNewswire/ --
Diversified manufacturer Leggett & Platt reported second quarter sales of $845 million, a 30% decrease versus second quarter last year.
Second quarter EBIT was $23 million, down $113 million or 83% from second quarter last year, and adjusted1 EBIT was $51 million, an $85 million decrease.
Second quarter EPS was a loss of $.05, a $.69 decrease versus second quarter 2019, and included a goodwill impairment charge of $.19 and restructuring charges of $.02. Second quarter adjusted1 EPS was $.16, a decrease of $.48, primarily from lower EBIT.
Debt, Cash Flow and Dividend
CEO COMMENTS
Chairman and CEO Karl Glassman commented, "Our second quarter results were significantly impacted by the economic effects of the COVID-19 pandemic. We were pleased to see sales improve sequentially throughout the quarter as demand improved in most of our markets. The swift cost reduction actions implemented at the onset of the pandemic helped to mitigate some of the earnings impact from lower demand levels.
"We continue to see demand recovering through July, although at varied rates across our markets and geographies given the ongoing effects of the pandemic and continuing economic uncertainty. We have improved our liquidity and will continue to carefully manage our cash and expenses. We are committed to maintaining our strong balance sheet, investment grade credit rating, and position as a Dividend Aristocrat.
"Our focus remains on the health and safety of our employees and their families, along with our customers, suppliers and communities we serve around the world. I am extremely proud of how our employees are working together to keep each other safe and healthy while serving our customers during this challenging time.
"Our long-term fundamentals have not changed. We continue to be leaders in most of our markets, focused on innovation and working closely with our customers to provide more of what they need to be successful. Our capabilities are unmatched in our large and expanding addressable markets. We are dedicated to our long-term vision for the Company and are confident that we will emerge from this crisis strong and focused on the future."
COVID-19 IMPACT
LIQUIDITY AND BALANCE SHEET
DIVIDEND
GUIDANCE
USES OF CASH
SEGMENT RESULTS – Second Quarter 2020 (versus 2Q 2019)
Bedding Products –
Specialized Products –
Furniture, Flooring & Textile Products –
SLIDES AND CONFERENCE CALL
A set of slides containing summary financial information is available from the Investor Relations section of Leggett's website at www.leggett.com. Management will host a conference call at 7:30 a.m. Central (8:30 a.m. Eastern) on Tuesday, August 4. The webcast can be accessed from Leggett's website. The dial-in number is (201) 689-8341; there is no passcode.
Third quarter results will be released after the market closes on Monday, November 2, with a conference call the next morning.
FOR MORE INFORMATION: Visit Leggett's website at www.leggett.com.
COMPANY DESCRIPTION: At Leggett & Platt (NYSE: LEG), we create innovative products that enhance people's lives, generate exceptional returns for our shareholders, and provide sought-after jobs in communities around the world. L&P is a 137-year-old diversified manufacturer that designs and produces engineered products found in most homes and automobiles. The Company is comprised of 15 business units and 140 manufacturing facilities located in 18 countries.
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.
FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements," including, but not limited to, the continued improvement of our demand; annualized savings from deploying cost savings measures, including fixed cost actions; the ability to maintain a strong liquidity and cash position; the amount of repatriated cash; the amount of capital expenditures; limiting acquisitions; our ability to collect receivables within their terms; our ability to manage inventory; and the amount of borrowing capacity under our commercial paper program and credit facility. Such forward-looking statements are expressly qualified by the cautionary statements described in this provision and reflect only the beliefs of Leggett or its management at the time the statement is made. Because all forward-looking statements deal with the future, they are subject to risks, uncertainties and developments which might cause actual events or results to differ materially from those envisioned or reflected in any forward-looking statement. Moreover, we do not have, and do not undertake, any duty to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement was made. Some of these risks and uncertainties include: (i) the adverse impact on our sales, earnings, liquidity, cash flow and financial condition caused by the COVID-19 pandemic which has and could continue to materially negatively impact (a) the demand for our products and our customers' products, growth rates in the industries in which we participate, and opportunities in those industries (b) our manufacturing facilities' ability to remain open, or to re-open if closed (either from the lack of demand or mandatory governmental closure), obtain necessary raw materials and parts, maintain appropriate labor levels and ship finished products to customers, (c) operating costs related to pay and benefits for our terminated employees, (d) our ability to collect trade and other notes receivables in accordance with their terms due to customer bankruptcy, financial difficulties or insolvency; (e) impairment of goodwill and long-lived assets, (f) restructuring-related costs, and (g) our ability to access the commercial paper market or borrow under our revolving credit facility, including our ability to comply with the restrictive covenants in our credit facility that may limit our operational flexibility and our ability to pay our debt when it comes due; (ii) the Company's ability to achieve its operating targets; (iii) increases or decreases in our capital needs, which may vary depending on acquisition or divestiture activity, our working capital needs and capital expenditures; (iv) market conditions; (v) price and product competition from foreign and domestic competitors, (vi) cost and availability of raw materials and labor, fuel and energy costs, (vii) our ability to generate cash sufficient to pay the dividend, (viii) our ability to repatriate cash from offshore accounts; (ix) net interest expense, tax rates, increased trade costs, cybersecurity breaches, customer losses and insolvencies, disruption to our steel rod mill, foreign currency fluctuation, the amount of fully diluted shares, depreciation and amortization, and litigation risks; (x) the preliminary nature of savings estimates; and (xi) other risk factors in the "Forward-Looking Statements" and "Risk Factors" sections in Leggett's most recent Form 10-K and Form 10-Q reports filed with the SEC.
CONTACT: Investor Relations, (417) 358-8131 or invest@leggett.com
Susan R. McCoy, Senior Vice President, Investor Relations
Wendy M. Watson, Vice President, Investor Relations
Cassie J. Branscum, Senior Director, Investor Relations
Tarah L. Sherwood, Director, Investor Relations
1 Please refer to attached tables for Non-GAAP Reconciliations
2 2% of volume decline attributable to exited business
LEGGETT & PLATT | | | | | | | | | ||||
RESULTS OF OPERATIONS | | SECOND QUARTER | | YEAR TO DATE | ||||||||
(In millions, except per share data) | | 2020 | | 2019 | | Change | | 2020 | | 2019 | | Change |
Net trade sales | | $ 845.1 | | $1,213.2 | | (30)% | | $1,890.6 | | $2,368.3 | | (20)% |
Cost of goods sold | | 698.8 | | 943.5 | | | | 1,521.5 | | 1,865.6 | | |
Gross profit | | 146.3 | | 269.7 | | (46)% | | 369.1 | | 502.7 | | (27)% |
Selling & administrative expenses | | 97.2 | | 118.3 | | (18)% | | 215.0 | | 236.9 | | (9)% |
Amortization | | 16.3 | | 16.9 | | | | 32.7 | | 31.0 | | |
Other expense (income), net | | 10.0 | | (1.5) | | | | 17.9 | | 0.6 | | |
Earnings before interest and taxes | | 22.8 | | 136.0 | | (83)% | | 103.5 | ` | 234.2 | | (56)% |
Net interest expense | | 20.4 | | 21.9 | | | | 40.4 | | 41.9 | | |
Earnings before income taxes | | 2.4 | | 114.1 | | | | 63.1 | | 192.3 | | |
Income taxes | | 8.5 | | 27.8 | | | | 23.5 | | 44.9 | | |
Net earnings | | (6.1) Werbung Mehr Nachrichten zur Leggett & Platt Aktie kostenlos abonnieren
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