Leggett reports second-quarter earnings decline

The furniture components manufacturer had earnings of 27 cents per share, compared to 33 cents in second-quarter 2007, Leggett announced Thursday.

Sales from continuing operations were $1.06 billion for the quarter, a hair lower than $1.07 billion reported a year ago. Same location sales were down 5 percent.

The manufacturer on July 16 closed the sale of its aluminum products division for $325 million and up to $25 million in preferred stock. The divestiture is part of the company’s plan to sell or liquidate seven business units to improve shareholder return.

In response to investor concerns, Leggett CEO and President David S. Haffner in a news release said the company’s bedding components business is seeing market share gains; the manufacturer has increased prices to offset rising raw material costs; and Leggett is in talks with potential buyers for the six remaining business units slated to be sold as part of the restructuring plan.

“In contrast to these positive developments, second-quarter results for the commercial segment are disappointing,” Haffner said in the release. “The store fixtures business unit is working diligently to meet our required expectations for improve performance, in spite of extremely difficult market conditions and retailers’ hesitancy to make capital investments in this environment.”

Expected earnings for the year remain at $1–$1.30 per share. Sales are projected to be about $4.3 billion, or 2 percent higher than 2007, in 2008.

Shares (NYSE: LEG) closed Friday at $18.03, compared to a 52-week range of $14.12 to $22.73.