Leggett & Platt lowers 2Q projections

Second-quarter earnings are expected to be between 31 cents and 36 cents per share, 11 cents lower than Leggett’s April guidance. The decline is because of an 8-cent decrease in earnings from continuing operations and 3 cents in incremental restructuring-related costs, according to a company news release.

Sales are anticipated to be $75 million lower than previously expected and are now projected at $1.3 billion for the quarter. That’s 4 percent lower than sales in second-quarter 2006.

Same-location sales are expected to be down by about 6 percent, though officials expect that will be partly offset by a 2 percent sales increase from acquisitions.

Projected 2007 earnings from continuing operations have been lowered to $5.2 billion, from $5.4 billion predicted in April. Sales in 2006 were $5.3 billion.

“Several of our markets have weakened considerably in the past eight weeks, resulting in a broad-based revenue shortfall,” CEO David S. Haffner said in the release. “We simply do not see a major catalyst that will appreciably increase demand; accordingly, our full-year guidance reflects continued market weakness for the remainder of 2007.”

Haffner said Leggett is “critically analyzing likely changes to individual business models and to the portfolio itself” that would follow in the footsteps of the company’s April divestiture of its $200 million Prime Foam division.

Shares (NYSE: LEG) closed Monday at $23.57, compared to a 52-week range of $21.93 to $25.47.