Leggett & Platt’s earnings fall on higher steel costs

Though revenue increased, higher steel costs pulled Leggett & Platt Inc.’s (NYSE: LEG) quarterly earnings down.

The Carthage-based manufacturer of engineered components and products for homes, offices and vehicles produced third-quarter net income of $82.6 million, or 60 cents per diluted share, a 12 percent decrease from $93.5 million, or 67 cents per diluted share, a year earlier, according to a news release.

“As expected, earnings and margins were pressured in the quarter by higher steel costs and the timing lag we typically experience in passing along those increases,” Leggett & Platt President and CEO Karl Glassman said in the release. “Assuming that steel costs stabilize, margins should improve by early next year.”

Third-quarter financial notes:
    •    Net sales from continuing operations improved by 6 percent to roughly $1 billion.
    •    Cost of goods sold rose 10 percent to $793.9 million.
    •    The company’s best-producing segment — residential products — had revenue of $431.2 million, a 5.9 percent increase.

As of Sept. 30, Leggett & Platt held assets of $3.3 billion and employed 22,000 people across 15 business units and 120 manufacturing plants in 19 countries, according to the release.

LEG shares were trading at $47.88 as of 8:39 a.m., compared with a 52-week range of $43.17 to $54.97.