Leggett |amp| Platt reports 40 eprcent earnings rise

Carthage-based Leggett & Platt, one of southwest Missouri's oldest companies, reported its second-best quarter for sales in company history, with second-quarter earnings rising approximately 40 percent.

Leggett & Platt, which was founded in 1883 and is included among the Fortune 500, announced net earnings of $70.3 million, or 35 cents per share, compared with $50.9 million, or 35 cents per share, a year ago.

"Earnings were up significantly for the quarter on a modest sales improvement," said Felix E. Wright, chairman and chief executive officer of Leggett & Platt. "Continued strength in the consumer sectors of the economy, coupled with gains in market share in several businesses, contributed to the increased sales and earnings."

The company reported that net sales came to $1.12 billion for the second quarter. That figure is up nearly 8 percent compared with sales of $1.04 billion for the same period in 2001.

In the first six months of the company's fiscal year, sales hit $2.14 billion, an increase of 2.4 percent when compared with $2.09 billion for the same period last year.

"Our balance sheet continues to reflect solid financial fundamentals," Wright said. "Working capital (excluding cash) was below the target level of 19 percent of annualized sales for the second consecutive quarter, and debt-to-total-capital was 27 percent, down from 32 percent a year earlier."

In addition, Wright said that cash generated from operations in the first six months totaled $192 million.

While there is improvement in the consumer sector of business, Wright conceded that nationwide the economic recovery remains slow on the industrial side.

"Our long-term goals remain unchanged," Wright said. "To maximize shareholder value, we continue to target consistent growth of sales and earnings, return on equity in the high teens and debt-to-total-capitalization of approximately 30 to 40 percent."

Wright said Leggett & Platt should earn between 31 cents and 36 cents per share for the third quarter, based on current trends and estimates, and between $1.20 and $1.30 per share for the full year.

Leggett & Platt is a diversified manufacturer that conceives, designs and produces a variety of engineered components and products for worldwide customers. It was founded in Carthage and its corporate headquarters are still there. The company's stock has been publicly owned for more than four decades, and Wright said Leggett & Platt's bookkeeping remains open and honest.

"As our record shows, we strive to communicate openly and with clarity how the company is performing," he said. "Our financial statements are clean, consistent and straightforward.

"We emphasize actual earnings rather than pro forma results, and we respond to questions from investors as candidly as possible without jeopardizing competitive or tactical advantages."