Leggett & Platt 2014 earnings down despite 4Q rebound

Despite a strong fourth quarter Carthage-based Leggett & Platt Inc. (NYSE: LEG) posted a full-year earnings decrease.

The manufacturer posted 2014 profits of $98 million, a 50.3 percent decrease from $197.3 million in 2013. Fourth-quarter earnings rose 267.9 percent to $20.6 million from $5.6 million in the corresponding three-month period a year earlier.

The company’s 2014 results were adversely affected by a noncash impairment charge, litigation expenses, a loss on a divestiture and ongoing losses from discontinued operations. In 2013, results were bolstered by an acquisition-related gain and income from discontinued operations, according to a news release.

Board Chairman and CEO David Haffner pointed to a $108 million noncash impairment charge prior to the divestiture of the company’s store fixtures operations. During 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. The company denied the allegations but said it entered the settlement to avoid uncertain expenses and distractions caused by the litigation.

2014 financial notes:

• Leggett & Platt repurchased 5 million shares of its stocks, reducing shares outstanding by 1 percent.
• In July, the company acquired Tempur Sealy's three U.S. innerspring component production facilities, in the process becoming their exclusive long-term supplier of wire-based innersprings in the U.S. and Canada.
• Earnings per diluted share for the year rose 30 cents to $1.55.

Leggett & Platt manufactures engineered components and products for homes, offices and vehicles. As of Dec. 31, the company held assets of $3.1 billion and employed 19,000 at 130 manufacturing centers in 18 countries, according to the release.

LEG shares were trading at $42.43 as of 9:43 a.m., compared to a 52-week range of $28.90 to $45.79.[[In-content Ad]]