Litigation expenses brought down Carthage-based Leggett & Platt Inc.'s (NYSE: LEG) net income in the third quarter.
The company paid $40 million to settle claims it and others engaged in a price-fixing conspiracy since at least 1999 to alter the price of polyurethane foam, according to a
news release.
In its third-quarter financial release, Leggett & Platt denied the allegations but said it entered settlement agreements to avoid the uncertain, expenses and distractions caused by litigation.
Leggett & Platt posted $48.2 million earnings in the third quarter, a 32 percent decrease compared to its $71.3 million net income a year earlier.
The manufacturer posted diluted share earnings of 37 cents for the three months ended Sept. 30, an 8-cent decrease from third-quarter 2013, according to a news release.
Net sales improved 14 percent to $997.4 million from $877.6 million a year earlier.
"A major component of our strategy, since 2007, has been the optimization of our portfolio of businesses. We remain committed to improving or exiting businesses that consistently underperform our margin and return on capital expectations," Leggett & Platt board Chairman and CEO David Haffner said in the release.
Leggett & Platt manufactures engineered components and products for homes, offices and vehicles. As of Sept. 30, the company held assets of $3.2 billion and employed 19,000 at 130 manufacturing facilities in 18 countries, according to the release.
LEG shares were trading at $37.71 as of 11:26 a.m., just under its 52-week high of $37.84.[[In-content Ad]]
