Leggett posts 2007, quarterly losses

The diversified manufacturer released its quarterly and year-end results Jan. 24.

The quarter showed a loss of $213 million, or a loss of $1.21 per share. The results include $143 million of goodwill impairment in the fixtures and display division operations, and $132 million in asset impairments associated with businesses Leggett intends to divest, according to a company news release. The company has “now incurred virtually all of the one-time costs associated with the strategic plan,” according to the release.

The loss also was attributed to lower sales in residential-related businesses, increased medical and energy costs and currency impacts.

Fourth-quarter sales from continuing operations, however, were $1.05 billion, up 1 percent from the same period a year earlier.

Earnings per share for the year were a loss of 6 cents. Sales from continuing operations fell 1 percent in 2007 to $4.31 billion, but cash from operations was a record $614 million, up 28 percent from 2006.

Leggett’s 2008 outlook calls for earnings per share between 95 cents and $1.30. The guidance includes between 5 cents and 10 cents per share in restructuring-related costs but doesn’t take into account potential earnings from discontinued operations or gains or losses from the divestitures, according to the release.

Sales from continuing operations this year are expected to be about $4.2 billion, or 2 percent lower than 2007. The decrease reflects the planned elimination of about $100 million in revenue with unacceptable profit margins in certain areas.

Leggett plans to use its entire 10 million-share repurchase authorization this year, according to the release.

“Despite the fact that 2008 will be a complicated reporting year as the divestitures are completed, we are confident in our execution of the strategic plan,” President and CEO David S. Haffner said in the release. “Shareholder returns have suffered recently, but we believe our actions will re-establish Leggett as a more profitable company – one that generates above-average total shareholder return.”

Shares (NYSE: LEG) closed Monday at $16.81, compared to a 52-week range of $15.50 to $24.73.