Leggett moves forward with growth plan

Four directors of business development and a vice president of business development were hired for Leggett’s residential furnishings, commercial fixturing and components, aluminum products, industrial materials and specialized products segments. The new employees are responsible for making sure their respective segments achieve profitable growth through internal expansion and external acquisitions.

The hirings are in line with the company’s plan, announced in September, to achieve profitable growth. Leggett is targeting an 8 percent to 10 percent annual growth in sales, margin improvements, reductions in share count and a 10 percent annual growth in earnings per share.

Within two years, Leggett hopes to attain a 20 percent gross margin, an 11 percent earnings-before-interest-and-tax margin on trade sales and a 7 percent net margin. Earnings per share in 2006 are expected to be between $1.55 and $1.75; third-quarter earnings per share reported in October were 45 cents, compared to 28 cents a year before.

Aside from the new development positions, Leggett is renewing its concentration on innovation and product development and enhancing its efforts to uncover new growth platforms, according to a company news release. So far, a senior-level position has been created that’s responsible for companywide engineering and innovation; there also are plans to establish a group that would report to CEO David Haffner on opportunities in growing markets as well as market and customer trends.