Leggett & Platt reports drop in earnings

The company cited unusually high workers’ compensation costs, higher costs for raw materials and currency impacts as the reasons for the drop in earnings.

Quarterly sales totaled $1.35 billion, up 0.8 percent from the same period in 2004.

“The second half of this year has been a difficult environment in which to operate,” said Chairman and CEO Felix E. Wright in a news release. “Our markets are adjusting to high gasoline prices and utility costs, devastating hurricanes, a shortage of petrochemicals and highly volatile steel costs. We expect that these pressures will eventually abate, but we do not know how quickly that will occur.”

Leggett’s net earnings for the year to date were $206 million, down 6.3 percent from the same period in 2004.

The company also announced plans to close, consolidate or divest certain underutilized and underperforming operations. The company is just beginning a companywide analysis to finalize the plans, but it estimates that 35 operations will be closed or altered in the process.

The company also announced five new acquisitions, which it said should add about $85 million to company revenue.

Shares of Leggett & Platt stock (NYSE: LEG) closed Oct. 31 at $20.04, compared to a 52-week range of $18.19 to $30.68.