Leggett & Platt posts 25 percent sales drop in 2009

Carthage-based manufacturer Leggett & Platt (NYSE: LEG) announced 2009 sales that were 25 percent lower than 2008, despite improved earnings in the fourth quarter.

Adjusted earnings from continuing operations were 30 cents per share. Company officials said earnings in the fourth quarter were improved as a result of cost-reduction efforts and pricing discipline.

Despite those improved earnings, fourth-quarter revenue was still 13 percent lower than 2008's fourth quarter. Officials cited a drop in steel prices as the main reason for the decline. Unit volumes also declined about 3 percent.

Adjusted earnings per share for the year were 86 cents, a 2 percent decrease compared to 2008.

"Our significant cost reduction efforts and pricing discipline allowed us to sustain (earnings per share) and improve margins, despite the weak economy," President and CEO David S. Haffner said in a news release. "Full year gross margin was 20.6 percent, the highest level since the year 2000. I am extremely pleased with our employees' accomplishments in the face of such economic headwind."

Throughout 2008 and 2009, Leggett generated cash of more than $1.4 billion from both operations and divestitures, increased quarterly dividends by 44 percent, bought back 15 percent (26 million shares) of its outstanding stock, reduced long-term net debt to its lowest level in more than a decade, and achieved a two-year total shareholder return of 32 percent, within the top 4 percent of all Standard & Poor's 500 companies.

Leggett officials say they anticipate sales of as much as $3.3 billion in 2010 - a conservative estimate based on the company's belief that the economy will likely remain depressed. Leggett projects that its continuing operations should generate 2010 EPS of between $.75 and $1.15.

Shares of Leggett & Platt closed Feb. 17 at $19.39, compared to a 52-week range of $10.03 to $21.44.