CARTHAGE, Mo. — Due to ongoing weak consumer demand in residential end markets, Leggett & Platt says it had weaker than expected results for its third quarter ended Sept. 30, but it paid down some of its debt and adjusted EBIT margin improved over the second quarter.
Third quarter sales were reported at $1.1 billion, a decrease of 6% compared with the same period in 2023. EPS for the period is 33 cents per share, a 4-cent decrease vs. the third quarter of 2024.
Its EBIT for the period was $78 million, down $13 million year over year, primarily due unfavorable sales mix in Steel Rod and Specialty Foam, lower volume, metal margin compression and higher bad debt reserves.
Adjusted EBIT margin, while down to 6.9% for the period, from 7.3% last year, was up 60 basis points over the second quarter of this year.
“We continued to make solid progress on our restructuring and operating efficiency improvement initiatives, although demand headwinds were more challenging than anticipated in the third quarter,” said President and CEO Karl Glassman in the earnings release. “Despite weaker than expected results, we paid down $124 million of debt and adjusted EBIT margin improved by 60 basis points sequentially this quarter.
“We expect weak demand in our residential end markets to persist into the fourth quarter due to a more challenging macro environment and softening in consumer spending.”
Total debt as of Sept. 30 was $1.9 billion, and its operating clash flow was $95 million for the period. Total liquidity as of Sept 30 was $748 million, with $277 million cash on hand and $471 million in capacity remaining under revolving credit facility.
Full year sales are expected to be $4.3 billion to $4.4 billion, down 7%-9% vs. 2023. EPS for the year is expected to be a loss of $3.56 to $3.71.
“Looking forward, we are confident that the actions we are taking to strengthen our balance sheet, improve operating efficiency and margins, and position ourselves for future growth opportunities will create long-term shareholder value,” he said.
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