Leggett & Platt reduces 4Q guidance

Leggett & Platt on Tuesday said it now expects to record a loss in the fourth quarter because of shrinking market demand.

The Carthage-based manufacturer said it predicts a quarterly loss of between 3 cents and 18 cents per share. Per-share earnings from continuing operations are expected to be 15 cents or less for the quarter.

The reduction in expectations is "largely due to extremely low market demand, leading to lower sales expectations, production curtailments and an increase in anticipated LIFO costs," the company said in a news release.

Sales are anticipated to be $75 million lower than previously thought. Fourth-quarter sales now are projected at $865 million, down 17 percent from $1.04 billion in sales in fourth-quarter 2007.

Leggett & Platt also has slowed its pace of stock repurchases in light of the economy. The company has purchased 1.4 million shares in the fourth quarter so far, bringing total purchases for the year to 15.1 million shares, or 9 percent of shares outstanding.

Cash flow in 2009 should be sufficient, the company said, to fund the estimated $260 million to $270 million needed for capital expenditures and dividends. The company has more than $400 million received from divestitures over the last year; net debt-to-capital below its long-term target range of between 30 percent and 40 percent; no long-term debt maturing until 2012; and more than $450 million available under its commercial paper program and revolver facility, according to the release.

Fourth-quarter results will be released after market close Feb. 3, with a conference call the following morning.

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