Leggett & Platt posted an $18 million loss in the fourth quarter but managed to swing a $104.4 million profit for the year.
The Carthage-based furnishings manufacturer reported results after market close Tuesday.
Leggett had a quarterly loss of 11 cents per share, or $18 million. That's an improvement from a $212.6 million, or $1.21 per share, loss in fourth-quarter 2007. Sales for the quarter were $883 million, down 15 percent from a year earlier.
The quarter was negatively affected by lower unit sales volumes, lower production volumes and lack of overhead recovery, the company said in a news release. Sales were down because of extremely weak market demand, though that was partially offset by inflation-related price increases.
"The weakened economy has resulted in dreadful market demand, with fourth quarter unit volumes down more than 20 percent," said President and CEO David S. Haffner, in the release. "Consumers have significantly curtailed spending, fearing further market declines, unavailable credit and/or job losses."
Fourth-quarter cash flow from operations was $233 million, the highest level in more than a decade, caused by the company's inventory reduction. During the quarter, Leggett also cut its work force by 9 percent, or 2,000 employees.
For 2008, Leggett earned a profit of $104.4 million, or 62 cents per share, compared to an $11.2 million loss, or a 6 cents per share loss, in 2007. Sales in 2008 were $4.08 billion.
Leggett initiated a restructuring plan in November 2007. Since then, the company divested five business units - resulting in $400 million in after-tax proceeds in 2008; reduced its store fixtures unit to half its previous size; reduced spending on capital and acquisitions by 50 percent; increased its annual dividend by 39 percent; bought back 9 percent of outstanding shares; and implemented a formal annual strategic planning process at the individual unit level.
Leggett's 2009 outlook calls for earnings to be between 60 cents and $1 per share. Sales are projected to be between $3.2 billion and $3.6 billion - which would be between 12 percent and 22 percent lower than 2008 sales.
Shares (NYSE: LEG) closed Tuesday at $12.71 and were trading down at $12.58 at 11 a.m. The 52-week range is $12.03 to $24.60.
This installment of Springfield Business Journal’s Architects & Engineers Project Report showcases 26 endeavors by area design and engineering professionals.
