Leggett & Platt profits up despite sales slump

Carthage-based Leggett & Platt Inc. (NYSE: LEG) recorded first-quarter profits of $49.1 million, representing a 12 percent gain compared to $44 million earnings in the same quarter of last year.

The manufacturer of engineered components and products for homes, offices and vehicles posted diluted earnings per share of 33 cents, improving from 30 cents in first-quarter 2012, according to a news release.

The bottom-line increase comes despite a 1 percent decrease in first-quarter sales to $936 million and a same-location sale decline of 2 percent.

Cost of goods sold, however, decreased 2.8 percent to $746.6 million, resulting in a gross profit improvement to $189.4 million from $178.3 million.

First-quarter financial notes:

• Leggett & Platt's sales included $484.9 million is residential furnishings, $114.6 million in commercial fixturing and components, $162.5 million in industrial materials and $174 million in specialized products.
• The board of directors declared a 29-cent first-quarter dividend, representing the 42nd consecutive annual dividend increase for the company.
• During the first quarter, the company repurchased 1.6 million shares of its stock and issued 2.4 million.

In March, Leggett & Platt entered into new four-year contracts with CEO David Haffner, President and Chief Operating Officer Karl Glassman and Executive Vice President and Chief Financial Officer Matthew Flanigan. Under the terms of the contracts, Haffner is paid a base salary of $995,000; Glassman is paid $745,000; and Flanigan, $441,000, according to Springfield Business Journal archives.

Leggett & Platt's assets were $3.4 billion as of March 31, with a matching figure for total liabilities and equity, according to the release.

LEG shares were trading at $32.14 as of 11:17 a.m., compared to a 52-week range of $19.26 to $34.07. The company reached its 52-week high on April 12.