Leggett & Platt 1Q sales fall on weak demand

Leggett & Platt's first-quarter sales fell 28 percent on weaker-than-expected market demand, the Carthage-based furniture components manufacturer reported Wednesday.

Sales for the period were $718 million, compared to $998 million a year ago.

Net earnings were $8.6 million, down from $44.6 million in first-quarter 2008. Earnings per share were 6 cents, compared to 23 cents a year ago.

"We continue to experience very weak demand across our markets," President and CEO David S. Haffner said in the earnings release. "For many of our businesses, demand seems to have stabilized during the first quarter, albeit at levels below what we anticipated. Office furniture volume continues to decline, consistent with industry trends."

Leggett's earnings also were negatively affected by lower steel prices, which resulted in inventory devaluation and lower selling prices.

The company is situated to weather the economic climate, according to the release, because of about $600 million available under its commercial paper program and revolver facility, net debt-to-capital well below the long-term target, and no significant long-term debt maturing until 2012.

Reduced guidance for the year calls for earnings to be between 60 cents and 90 cents per share. The company projects 2009 sales to be between $2.9 billion and $3.3 billion, or between 19 percent and 29 percent lower than 2008.

Shares (NYSE: LEG) closed Wednesday at $15.12, compared to a 52-week range of $10.03 to $24.60.