Leggett & Platt earnings roughly flat in 1Q

Carthage-based manufacturer Leggett & Platt Inc. (NYSE: LEG) reported first-quarter earnings of $44 million, down slightly from profits of $45 million in the same quarter of 2011.

During the quarter, Leggett & Platt - which manufactures engineered components and products for homes, offices and vehicles - posted earnings per diluted share of 30 cents, equaling first-quarter 2011 earnings per share, according to a news release.
 
Sales for the latest quarter were $947 million, a 6 percent increase compared to $895.8 million in the same quarter last year.

Leggett & Platt President and CEO David Haffner said that during the first quarter, the company felt the effects of its acquisition of Kirkland, Wash.-based Western Pneumatic Tube Holding LLC. In December, the company signed a definitive agreement to purchase the company for roughly $188 million, and the transaction closed during the first quarter.

"The Western Pneumatic Tube acquisition is exceeding our expectations for strong performance," Haffner said in the release. "In the first half of this year, we are recognizing $6 million of charges from an acquisition-related fair value adjustment to inventory; these charges will cease after the second quarter. As a result, Western's earnings should improve as the year progresses."

Other highlights:

• The company's gross profit was $178.3 million during the quarter, after taking into account $768.5 million in the cost of goods sold.
• Cash flow showed a 39 percent improvement. Net cash from operating activities was $65.1 million, up from $46.8 million from first-quarter 2011.
• Leggett & Platt officials said in the release the company anticipates 2012 sales of approximately $3.75 billion, including modest inflation. The company projects 2012 earnings per share of approximately $1.35.

As of March 31, Leggett & Platt's assets were $3.2 billion, a 5 percent increase from the same period a year ago.

As of 11:51 a.m., the company's shares were trading at $21.77, compared to a 52-week range of $17.80 to $26.95.