Leggett & Platt posts $24M loss in 2Q

Carthage-based manufacturer Leggett & Platt Inc. (NYSE: LEG) reported a second-quarter net loss of $23.9 million, a 134 percent drop from profits of $71.3 million in the same quarter of 2013. The company lost 17 cents per diluted share during quarter ended June 30, compared to earnings per share of 48 cents a year earlier.

"Based largely on the weak demand outlook, we recorded a $108 million pretax, noncash impairment charge to write off all of the goodwill associated with the store fixtures group," Leggett & Platt Chairman and CEO David Haffner said in a news release. "We have engaged an investment banker and are exploring strategic alternatives for this unit, including possible divestiture."

Second-quarter financial notes:

• Leggett & Platt's sales increased 4 percent to $1 billion, compared to $958.8 million in second-quarter 2013.
• The company repurchased 2.3 million shares of its stock at an average price of $33.33.
• Same store sales rose 2 percent.

After its second-quarter wrapped up, on July 1 Leggett & Platt announced it was named the exclusive long-term supplier in the U.S. and Canada of matter innersprings for Tempur Sealy and box springs for Sealy.

Leggett & Platt manufactures engineered components and products for homes, offices and vehicles. As of June 30, the company held assets of $3.2 billion and employed some 19,000 at 130 manufacturing facilities in 18 countries, according to the release.

LEG shares were trading at $33.26 as of 9:27 a.m., compared to a 52-week range of $28 to $34.80.[[In-content Ad]]